This paper describes a development of 5-axis dry electrical discharge machining (dry EDM). The machining characteristics in the processing of a spherical cavity were compared between 3-axis and 5-axis machining in order to investigate the effect of the 5-axis dry EDM. It was found that the processing time of 5-axis machining was nine times shorter than 3-axis machining. Since the end surface of pipe electrode was uniformly worn in 5-axis machining, it was easy to compensate for the tool electrode wear and improve the machining accuracy. Error of the processed shape from the target shape increased when the pitch used in finishing was larger than 60% of the tool electrode diameter due to the edge wear of the tool electrode. Hence, the machining accuracy was improved by optimizing the pitch of the tool path and compensating for the tool electrode wear using the simulation developed.