A fabricating method of a TFT includes first forming a source on a substrate. Then, a first insulation pattern layer is formed to cover parts of the source and the substrate. The first insulation pattern layer has an opening exposing a part of the source. Thereafter, a gate pattern layer is formed on the first insulation pattern layer. Then, the gate pattern layer and a second insulation pattern layer formed thereon surround the opening. Moreover, a second lateral protection wall is formed on an edge of the gate pattern layer in the opening. Afterwards, a channel layer is formed in the opening and covers the second lateral protection wall and the source. Then, a passivation layer with a contact window is formed on the channel layer and the second insulation pattern layer to expose a portion of the channel layer. Thereafter, a drain is formed on the exposed channel layer.