The invention provides a light-emitting device with high light extraction efficiency and a manufacturing method thereof. A light emitting device includes: a rectangular substrate, a light emitting element, a reflective member disposed at one or more lateral sides of the light emitting element while being away from therefrom, a light guide member, and a light transmissive member(25) on the light guide member. The reflective member includes one or more first reflective members(18) opposing lateral faces of the light emitting element, and a second reflective member(20) outside the first reflective member. The first reflective members have inner lateral faces opposing each other each having an oblique or curved portion slanted so that a distance therebetween increases towards the light transmissive member from a side close to the substrate. The second reflective member covers outer lateral faces of the light transmissive member and the first reflective members, and an upper face of the second reflective member is flush with an upper face of the light transmissive member.