A memory device includes first transistor over a semiconductor substrate, wherein the first transistor includes a first word line extending over the semiconductor substrate; a second transistor over the semiconductor substrate, wherein the second transistor includes a second word line extending over the first word line; a first air gap extending between the first word line and the second word line; a memory film extending along and contacting the first word line and the second word line; a channel layer extending along the memory film; a source line extending along the channel layer, wherein the memory film is between the source line and the word line; a bit line extending along the channel layer, wherein the memory film is between the bit line and the word line; and an isolation region between the source line and the bit line.