An improved structure of the high electron mobility transistor (HEMT) and a fabrication method thereof are disclosed. The improved HEMT structure comprises a substrate, a channel layer, a spacing layer, a carrier supply layer, a Schottky layer, a first etch stop layer, a first n type doped layer formed by AlxGa1-xAs, and a second n type doped layer. The fabrication method comprises steps of: etching a gate, a drain, and a source recess by using a multiple selective etching process. Below the gate, the drain, and the source recess is the Schottky layer. A gate electrode is deposited in the gate recess to form Schottky contact. A drain electrode and a source electrode are deposited to form ohmic contacts in the drain recess and the source recess respectively, and on the second n type doped layer surrounding the drain recess and the source recess respectively.