Abstract In several fields of mechanical engineering internal precision geometries are applied. For this, application requirements like high shape accuracy, sufficient stability, high wear resistance or an increase of life time have to be fulfilled. However, there is also a demand on quick and precise manufacturing processes that are flexible in machining various internal geometries. Electrochemical machining (ECM) is a process which meets these requirements. This process allows surface structuring and shaping of metal components with high shape accuracy independently of the materials strength and hardness [1] . This study presents investigations on a developed process design for manufacturing internal precision geometries by pulsed electrochemical machining (PECM) with help of multiphysics simulations. The peculiarity of this process is the shaping of the workpiece by the lateral working gap. Multiphysics simulations were carried out to understand the respective interactions between several physical phenomena. Especially, fluid dynamical effects are described in detail within the developed model. Furthermore, Joule heating and cathodic hydrogen formation are included. The fluid flow ensures the removal of heat and hydrogen and a continual supply with fresh electrolyte, respectively. The electrical conductivity of the electrolyte is modeled as a function of hydrogen volume concentration and temperature. Hence, both effects, Joule heating and hydrogen formation, influence the current density distribution which in turn determines the material removal.