Three dimensional quantum well transistors and fabrication methods are provided. A quantum well layer, a barrier layer, and a gate structure can be sequentially formed on an insulating surface of a fin part. The gate structure can be formed over the barrier layer and across the fin part. The QW layer and the barrier layer can form a hetero-junction of the transistor. A recess can be formed in the fin part on both sides of the gate structure to suspend a sidewall spacer. A source and a drain can be formed by growing an epitaxial material in the recess and the sidewall spacer formed on both sidewalls of the gate electrode can be positioned on surface of the source and the drain.