A MTJ stack comprising at least a pinned layer, a barrier layer, and a free layer is deposited on a bottom electrode. A top electrode layer, a carbon-based hard mask, and a dielectric hard mask are deposited in order on the MTJ stack. First, the hard masks and MTJ stack are etched. The etched MTJ stack has a first width. During the first etching, chemical damage forms on sidewalls of the MTJ stack. Next, the carbon-based hard mask is trimmed to a second width smaller than the first width. Then in a second etching, the top electrode and free layer of said MTJ stack not covered by the trimmed carbon-based hard mask are etched to complete formation of the MTJ structure wherein during the second etching of the free layer, chemical damage is removed from the free layer and metal re-deposition is formed on sidewalls of the free layer.