A magnetic tunnel junction (MTJ) device includes a bottom electrode, a reference layer, a tunnel barrier layer, a free layer and a top electrode. The bottom electrode and the top electrode are facing each other. The reference layer, the tunnel barrier layer and the free layer are stacked from the bottom electrode to the top electrode, wherein the free layer includes a first ferromagnetic layer, a spacer and a second ferromagnetic layer, wherein the spacer is sandwiched by the first ferromagnetic layer and the second ferromagnetic layer, wherein the spacer includes oxidized spacer sidewall parts, the first ferromagnetic layer includes first oxidized sidewall parts, and the second ferromagnetic layer includes second oxidized sidewall parts. The present invention also provides a method of manufacturing a magnetic tunnel junction (MTJ) device.