Electrolyte electrical conductivity plays a vital role as a process parameter during electrochemical macromachining as well as micromachining, especially during anode shape prediction and tool design. Electrolyte electrical conductivity during electrochemical machining varies due to generation of gas bubbles at the tool and workpiece surfaces, sludge due to the dissolution of workpiece material, and heat due to the flow of electric current in the circuit. The electrolyte becomes a multiphase system. A mathematical model to predict the electrolyte electrical conductivity in the multiphase system is presented in this article. An experimental study has also been carried out to validate the proposed model. This model has been applied to study the variation in electrolyte electrical conductivity along the electrolyte flow direction during electrochemical micromachining by measuring change in workpiece thickness. Optimum input machining parameters are also presented at which the change in electrolyte conductivity is negligible in the machining zone.