Electrochemical machining has the advantage of being free of cathode loss, thermal stress, and residual stress, and is suitable for high precision machining of metal structures. Localization of anodic dissolution can be significantly improved by the side-wall insulation of the cathode. However, for shaped-hole machining, the removal of electrolytic products in the machining gap becomes problematic with the increase of machining depth, which may hinder the machining process. The application of vibration to the cathode in an electrochemical machining is considered an effective approach because the frontal gap is periodically changed by the vibration; therefore, the removal of electrolytic products and the refreshment of electrolyte are facilitated. This study is aimed at finding a suitable method for diamond-shaped hole fabrication using electrochemical machining. The influence of vibrating feed, cathode with and without side-wall insulation on the machining stability and accuracy were studied based on the machining system developed in this study. The experimental results reveal that the machining accuracy of the diamond-shaped hole can be improved remarkably by reducing the width of the tool edge. Meanwhile, the machining stability can be improved significantly with a reasonable vibrating feed mode.