A novel miniature diamond grinding tool usable for the precise micro-grinding of miniature parts is presented. A hybrid process that combines 'micro-EDM' with 'precision co-deposition' is proposed. The metal substrate is micro-EDMed to a 50 µm diameter and micro diamonds with 0–2 µm grains are 'electroformed' on the substrate surface, producing a miniature multilayered grinding tool. Nickel and diamond act as binders and cutters, respectively. A partition plate with an array of drilled holes is designed to ensure good convection in the electroforming solution. The dispersion of diamond grains and displacement of nickel ions are noticeably improved. A miniature funnel mould enables the diamond grains to converge towards the cathode to increase their deposition probability on the substrate, thereby improving their distribution on the substrate surface. A micro ZrO₂ ceramic ferrule is finely ground by the developed grinding tool and then yields a surface roughness of R_a = 0.085 µm. The proposed approach is applied during the final machining process.