Polycrystalline diamond is an ideal material for parts with micro-holes and has been widely used as dies and cutting tools in automotive, aerospace and woodworking industries due to its superior wear and corrosion resistance. In this research paper, the modeling and simultaneous optimization of multiple performance characteristics such as material removal rate and surface roughness of polycrystalline diamond (PCD) with ultrasonic machining process has been presented. The fuzzy logic and taguchi's quality loss function has been used. In recent years, fuzzy logic has been used in manufacturing engineering for modeling and monitoring. Also the effect of controllable machining parameters like type of abrasive slurry, their size and concentration, nature of tool material and the power rating of the machine has been determined by applying the single objective and multi-objective optimization techniques. The analysis of results has been done using the MATLAB 7.5 software and results obtained are validated by conducting the confirmation experiments. The results show the considerable improvement in S/N ratio as compared to initial cutting conditions. The surface roughness of machined surface has been measured by using the Perthometer (M4Pi, Mahr Germany).