A method of manufacturing a phase change memory includes: (i) forming a first dielectric layer, a conductive contact and a first electrode over a semiconductor substrate; (ii) forming a second dielectric layer having an opening over the first dielectric layer, the opening exposing a top surface of the first electrode; (iii) forming a barrier layer lining a sidewall of the opening; (iv) forming a phase change element in the opening, wherein the phase change element includes a base and a peripheral wall extending upwards along the barrier layer from a periphery of the base, and an inner side of the peripheral wall defines a recess having an inlet and a bottom portion; (v) forming a heater filled in the recess; and (vi) forming a second electrode over the heater. A phase change memory is disclosed herein as well.