Shape Memory Alloys (SMAs) are pivotal in diverse industrial applications due to their exceptional properties, including actuation, biocompatibility, and adaptability in aerospace, biomedical, and military domains. However, their complex machinability often leads to high costs and suboptimal surface quality when processed using traditional methods. Using Response Surface Methodology (RSM) with a Central Composite Design (CCD), this study evaluated the effects of input parameters, including pulse on time (Ton), pulse off time (Toff), peak current (Ip), and gap voltage (GV), on material wear responses during Electrical Discharge Machining (EDM). Fe-based Shape Memory Alloys (SMAs) were machined using a Cu-tungsten electrode to investigate the wear characteristics of both workpieces and tool electrodes. Results revealed that Workpiece Material Removal Rate (WOW) ranged from 11.30 to 65.17 mm³/min, and Tool Wear Rate (WOTE) varied from 0.0062 to 0.01127 g/min. Scanning Electron Microscopy (SEM) of machined surfaces showcased craters, micro-cracks, and recast layers, elucidating the correlation between process parameters and surface integrity. Multi-objective optimization using the desirability approach identified optimal conditions for balancing machining efficiency and surface quality. This research provides a comprehensive understanding of the EDM process for Fe-based SMAs, paving the way for improved machinability and expanded industrial applications.