The feasibility of using foil materials as tool electrode in micro electro discharge machining (micro EDM) has provided new machining alternative for the spark erosion of micro grooves. To complement the widely used (and expensive) micro EDM tool electrode material (tungsten), two cost effective materials namely graphite and stainless steel have been tried as tool electrodes. Recent technological innovations have provided novel flushing techniques such as the utilization of gravitational and magnetic forces in debris removal. A study on the performance of tool electrode materials vis-à-vis these novel flushing techniques in micro EDM is discussed in this paper. It is noticed that the graphite provides the maximum MRR while the tungsten provides the lowest surface roughness during the micro groove machining on tool steel.