Electro Discharge Machining (EDM) is a well-known non-traditional machining technique which is widely used to make die castings and turbine blades out of difficult-to-cut materials like Inconel 625. The machined part's surface quality and dimensional accuracy are affected by the EDM electrode's wear. Moreover, surface roughness and residual stress augmentation of EDM-machined components can reduce the workpiece's lifespan by decreasing the fatigue life of machined parts. To enhance the precision and durability of EDM machined components, residual stress, tool wear, and surface roughness should be evaluated and minimized. The majority of published research works for the assessment and optimization of EDM machining parameters are based on experimental works which are limited to testing, workpiece materials, and machining conditions. In order to improve the quality of machined surfaces and reduce tool wear and residual stress during Inconel 625 EDM processes, a virtual machining approach has been developed in the research work. To predict the cutting temperature during EDM operations, the modified Johnson Cook model of Inconel alloys is used. The finite element approach is then used to calculate the generated residual stress during the EDM process. The proposed virtual machining approach is also applied in order to predict the surface roughness of EDM machined parts. To minimize the residual stress, tool wear, and surface roughness during EDM operations of Inconel 625, the machining parameters of gap voltage, peak current, pulse-off time, and pulse-on time are optimized using the Taguchi optimization approach. Experiments and simulations are then conducted to verify the developed virtual machining system in the study. So, using the optimal machining parameters, the residual stress, surface roughness of machined items and wear of EDM electrode are minimized by 24.5 %, 25.4 %, and 25.4 % respectively. Thus, the quality and reliability of components made using EDM processes may be enhanced by the suggested virtual machining system.