To achieve better precision of features generated using the micro-electrical discharge machining (micro-EDM), there is a necessity to minimize the wear of the tool electrode, because a change in the dimensions of the electrode is reflected directly or indirectly on the feature. This paper presents a novel modeling and analysis approach of the tool wear in micro-EDM using a systematic statistical method exemplifying the influences of capacitance, feed rate and voltage on the tool wear ratio. The association between tool wear ratio and the input factors is comprehended by using main effect plots, interaction effects and regression analysis. A maximum variation of four-fold in the tool wear ratio have been observed which indicated that the tool wear ratio varies significantly over the trials. As the capacitance increases from 1 to 10 nF, the increase in tool wear ratio is by 33%. An increase in voltage as well as capacitance would lead to an increase in the number of charged particles, the number of collisions among them, which further enhances the transfer of the proportion of heat energy to the tool surface. Furthermore, to model the tool wear phenomenon, a egression relationship between tool wear ratio and the process inputs has been developed.