Atomized dielectric-based electrical discharge machining (EDM) is an emerging technology in which the dielectric between the electrodes is supplied in the form of a thin film using a spray atomizer. This novel machining process uses significantly less quantities of dielectric compared to the conventional EDM while resulting in higher material removal rates and better debris flushing. This paper presents a model-based investigation of the atomized dielectric-based EDM to study the effect of the dielectric film flow on material removal. A melt-pool formation and material removal model is developed to predict the material removal in terms of crater shapes during a single EDM discharge. The atomization spray parameters are varied in order to produce different dielectric film velocities. The model accurately captures the asymmetry in crater shapes caused by the dielectric film flow and predicts the crater diameter and depth, however, the model overestimates the crater sizes observed in experiments.