A semiconductor device including a first GaN layer, an AlGaN layer, a second GaN layer, a gate electrode, a source electrode, and a drain electrode sequentially stacked on a substrate, capable of improving a leakage current and a breakdown voltage characteristics generated in the gate electrode by locally forming a p type GaN layer on the AlGaN layer, and a manufacturing method thereof, and a manufacturing method thereof are provided. The semiconductor device includes: a substrate, a first GaN layer formed on the substrate, an AlGaN layer formed on the first GaN layer, a second GaN layer formed on the AlGaN layer and including a p type GaN layer, and a gate electrode formed on the second GaN layer, wherein the p type GaN layer may be in contact with a portion of the gate electrode.