This paper describes the development of a new dry wire electrical discharge machining (dry-WEDM) method which is conducted in a gas atmosphere without using dielectric liquid in order to improve the accuracy of finish cutting. In dry-WEDM, since the process reaction force is negligibly small, the vibration of the wire electrode is minute. The gap distance in dry-WEDM is narrower than that in conventional WEDM using dielectric liquid, enabling dry-WEDM to realize high accuracy in finish cutting. Moreover, since there is no need to use water as dielectric liquid, there is no corrosion of the workpiece, making dry-WEDM advantageous for the manufacturing of high-precision dies and molds.