A method for manufacturing compatible vertical double diffused metal oxide semiconductor (VDMOS) transistor and lateral double diffused metal oxide semiconductor (LDMOS) transistor includes: providing a substrate having an LDMOS transistor region and a VDMOS transistor region; forming an N-buried region in the substrate; forming an epitaxial layer on the N-buried layer region; forming isolation regions in the LDMOS transistor region and the VDMOS transistor region; forming a drift region in the LDMOS transistor region; forming gates in the LDMOS transistor region and the VDMOS transistor region; forming PBODY regions in the LDMOS transistor region and the VDMOS transistor region; forming an N-type GRADE region in the LDMOS transistor region; forming an NSINK region in the VDMOS transistor region, where the NSINK region is in contact with the N-buried layer region; forming sources and drains in the LDMOS transistor region and the VDMOS transistor region; and forming a P+ region in the LDMOS transistor region, where the P+ region is in contact with the source.