A semiconductor structure includes a source/drain (S/D) feature disposed adjacent to a metal gate structure (MG), an S/D contact disposed over the S/D feature, and a dielectric layer disposed over the S/D contact, where the S/D feature and the S/D contact are separated from the MG by a first air gap, where the dielectric layer partially fills the first air gap, and where a bottom portion of a bottom surface of the S/D contact is separated from a top portion of the S/D feature by a second air gap that is connected to the first air gap.