Powder‐mixed electrical discharge machining (PMEDM), a non‐conventional manufacturing process involves the use of a dielectric fluid mixed with abrasive powder (Al2O3), combines the benefits of mechanical and thermal interactions. The aim of this article is to use a new approach of performance evaluation to evaluate the effectiveness of optimising multiple performance characteristics of PMEDM of SiC reinforced ZA‐27 metal matrix composites (MMCs). Taguchi analysis is used to plan and analyse the experiment and grey relational analysis (GRA) for multi‐parameter analysis. The considered process parameter includes the four control factors namely powder concentration, % Sic in MMC, pulse current (Ip) and duty cycle (τ). The combination of L9 orthogonal array design of experiment with GRA enables to determine the optimal parameters for multiple responses. GRA is used to obtain a single performance index, grey relational grade through grey relational coefficient to optimise the PMEDM process. In addition, analysis of variance (ANOVA) for the GRC is also utilised.