The present invention relates to a nonvolatile memory device and a manufacturing method thereof, the device comprising a plurality of word lines; a plurality of bit lines perpendicular to the word lines; and a plurality of memory cells including a transistor with a source connected to a source line, a gate, and a drain connected to a memory element, with the other end of the memory element connected to the bit lines. Between memory cells adjacent along a bit line, a gate terminal in a groove between the memory cells connects the gates in the memory cells to a word line. Memory cells adjacent along a word line are connected to one bit line contact point, and memory cells sharing a gate terminal are connected to different bit lines. Bit lines are disposed at the upper portion and source lines at the lower end of the memory cell.