The failure mechanisms of micro hollow cathode discharges (MHCD) in silicon have been investigated using their I-V characteristics, high speed photography and scanning electron microscopy. Experiments were carried out in helium. We observed I–V instabilities in the form of rapid voltage decreases associated with current spikes. The current spikes can reach values more than 100 times greater than the average MHCD current. (The peaks can be more than 1 Ampere for a few 10’s of nanoseconds.) These current spikes are correlated in time with 3–10 μm diameter optical flashes that occur inside the cavities. The SEM characterizations indicated that blister-like structures form on the Si surface during plasma operation. Thin Si layers detach from the surface in localized regions. We theorize that shallow helium implantation occurs and forms the ‘blisters’ whenever the Si is biased as the cathode. These blisters ‘explode’ when the helium pressure inside them becomes too large leading to the transient micro-arcs seen in both the optical emission and the I–V characteristics. We noted that blisters were never found on the metal counter electrode, even when it was biased as the cathode (and the Si as the anode). This observation led to a few suggestions for delaying the failure of Si MHCDs. One may coat the Si cathode (cavities) with blister resistant material; design the MHCD array to operate with the Si as the anode rather than as the cathode; or use a gas additive to prevent surface damage. Regarding the latter, tests using SF6 as the gas additive successfully prevented blister formation through rapid etching. The result was an enhanced MHCD lifetime.