To provide a liquid crystal device and a method of manufacturing the liquid crystal device which has high durability in an environment of high temperature and high humidity, and which can be applied to optical communication device. A liquid crystal device and a method of manufacturing the liquid crystal device includes a first substrate provided with a frame shaped seal region for encapsulating a liquid crystal layer, and a second substrate provided in opposition to the first substrate, wherein a gold frame shaped structure is provided in the seal region of the first substrate so as to be crushed and deformed to form metallic bond when superimposed and joined to the second substrate, and wherein a gold film is disposed in the portion of the second substrate opposed to the gold frame shaped structure so as to form metallic bond to the gold frame shaped structure.