In the present study, an aluminium based nanocomposite, reinforced with 2 wt. % aluminium oxide (Al2O3) is developed through stir casting method. The mechanical properties such as ultimate tensile strength, % elongation, hardness and impact strength are determined for such developed nanocomposite. An improvement of 63.7% in hardness and 60.1% in ultimate tensile strength is observed for this nanocomposite due to the reinforced Al2O3 nanoparticles. These hard ceramic particles also influences the material removal rate (MRR), tool wear rate (TWR) and surface finish in an electro-discharge machining (EDM) process. In this work, EDM of Al 7075/2 wt. % Al2O3 nanocomposite is carried out using copper and brass electrodes using Taguchi L18 array. The percentage contribution of each process parameter on the response variables was determined using analysis of variance (ANOVA). Multi-response signal to noise ratio (MRSN) and the optimum combination levels for the input parameters was obtained using Taguchi's parametric design. MRR and surface roughness are substantially improved, when machining is performed at optimized conditions.