An insulated gate bipolar translator (IGBT) with a built-in diode and a manufacturing method thereof are provided. The IGBT comprises: a semiconductor substrate (1) of the first conduction type which has a first major surface (1S1) and a second major surface (1S2), wherein the semiconductor substrate (1) comprises an active region (100) and a terminal protection area (200) which is located at the outer side of the active region; an insulated gate transistor unit which is formed at the side of the first major surface (1S1) of the active region (100), wherein a channel of the first conduction type is formed thereon during the conduction thereof; and first semiconductor layers (10) of the first conduction type and second semiconductor layers (11) of the second conduction type of the active region, which are formed at the side of the second major surface (1S2) of the semiconductor substrate (1) alternately, wherein the IGBT only comprises the second semiconductor layers (11) in the terminal protection area (200) which is located at the side of the second major surface (1S2) of the semiconductor substrate (1).