The invention provides a phase change memory and a manufacturing method of the phase change memory. The phase change memory comprises a substrate, a memory unit array and a circuit unit, wherein the memory unit array and a circuit unit are arranged on the substrate, and the circuit unit is arranged on the periphery of the memory unit array. The phase change memory further comprises a trench isolation structure which is arranged between the memory unit array and the circuit unit, and surrounds the memory unit array. The manufacturing method of the phase change memory comprises the steps of providing the substrate, forming the memory unit array on a memory unit area on the substrate, forming the trench isolation structure which surrounds the memory unit array on the substrate, and forming the circuit unit on the peripheral area of the trench isolation structure on the substrate. The trench isolation structure can carry out insulation between the memory unit array and the circuit unit, and can reduce the number of parasitic diodes arranged between the memory unit array and the circuit unit to improve performance of the phase change memory.