A high-electron mobility transistor includes a substrate, a GaN channel layer over the substrate, an AlGaN layer over the GaN channel layer, a gate recess in the AlGaN layer, a source region and a drain region on opposite sides of the gate recess, a GaN source layer and a GaN drain layer grown on the AlGaN layer within the source region and the drain region, respectively, a p-GaN gate layer in and on the gate recess; and a re-grown AlGaN film on the AlGaN layer, on the GaN source layer and the GaN drain layer, and on interior surface of the gate recess.