An attempt was made to characterize the dry microelectric discharge machining (μ-EDM) plasma systematically by using optical emission spectroscopy. In order to characterize the plasma and its parameters such as plasma temperature, electron density, Debye length, and gamma parameter, the optical spectra were recorded for different energies and with different diameters of tool electrode. From the recorded spectra, using line pair method and modified Saha equation, plasma temperature and electron density, respectively were calculated. From these two, Debye length and plasma parameter were also calculated. These studies indicate that the plasma produced in dry μ-EDM is ideal. In addition to this, we found that the dry μ-EDM region is below the conventional EDM region in log electron density and log temperature plot. Morphological analysis was carried out on crater produced by different energies on the workpiece using a scanning electron microscope. The crater shape may dependent on the geometry of the tool tip, number of discharges, and energy of discharge. © 2011 Springer-Verlag London Limited.