A method of controlling an electric discharge machine wherein a motor (105) for moving an energized electrode (EP) relative to a workpiece is driven in accordance with command data. The method includes the steps of storing in memory retraction control information contained in the command data, moving the electrode (EP) in the advancing direction relative to the workpiece by controlling the speed of the motor (105) in accordance with machining feed speed information contained in the entered command data, monitoring the current position of the electrode (EP) by counting, via counting means (107), pulses generated by a sensor (106) whenever the motor (105) rotates by a predetermined amount, moving the electrode (EP) in the retracting direction relative to the workpiece by reading in retraction speed from the retraction control information stored in the memory and controlling the speed of the motor (105) on the basis of the retraction speed, when a signal indicative of a short circuit is generated, and moving the electrode (EP) in the advancing direction relative to the workpiece by reading in a re-advancing speed from the retraction control information stored in the memory, when a signal indicative of an end to the short circuit is generated.