A fabrication method of a light-emitting diode including forming an epitaxial layer on a first substrate; forming a metal pad and a stress release ring on the epitaxial layer, wherein the stress release ring surrounds the metal pad; performing a substrate replacement process to transfer the epitaxial layer, the metal pad, and the stress release ring onto a second substrate, wherein the metal pad and the stress release ring are disposed between the epitaxial layer and the second substrate; patterning the epitaxial layer to expose a portion of the stress release ring; and removing the stress release ring to suspend a portion of the epitaxial layer. Moreover, a light emitting diode is provided.