The invention provides a silicon carbide plane vertical field effect transistor and a manufacturing method thereof. According to the silicon carbide plane vertical field effect transistor, an N+ current channel is formed in an intermediate region of an N-type drift region through ion implantation; and a P-type shielding layer is further formed below the position of contact among a P+ type base region, a corresponding N+ source region and a P+ channel substrate through ion implantation. The problem of source-drain punch-through is effectively solved; the peak electric field in a gate dielectriclayer is reduced; and the breakdown voltage and the conduction loss of the silicon carbide plane vertical field effect transistor are improved.