A field effect transistor has an MOS structure and is formed of a nitride based compound semiconductor. The field effect transistor includes a substrate; a semiconductor operating layer having a recess and formed on the substrate; an insulating layer formed on the semiconductor operating layer including the recess; a gate electrode formed on the insulating layer at the recess; and a source electrode and a drain electrode formed on the semiconductor operating layer with the recess in between and electrically connected to the semiconductor operating layer. The recess includes a side wall inclined relative to the semiconductor operating layer.