In a method of manufacturing a semiconductor device including a Fin FET, a fin structure extending in a first direction is formed over a substrate. An isolation insulating layer is formed over the substrate so that an upper portion of the fin structure is exposed from the isolation insulating layer. A gate structure extending in a second direction crossing the first direction is formed over a part of the fin structure. A fin mask layer is formed on sidewalls of a source/drain region of the fin structure. The source/drain region of the fin structure is recessed by a plasma etching process. An epitaxial source/drain structure is formed over the recessed fin structure. In the recessing the source/drain region of the fin structure, the plasma etching process comprises applying pulsed bias voltage and RF voltage with pulsed power.