The method allows the formation of a self-aligned guardring surrounding a Schottky barrier device. The resulting guardring is as close to the Schottky barrier device as is possible. This reduces the area of the chip used by other guardring forming techniques of the prior art. The method involves first opening a hole in an insulator to expose the silicon surface. The Schottky barrier forming metal is then deposited over the insulator and the silicon surface. Heat treatment of the appropriate temperature and time is utilized to form the metal silicide Schottky barrier device. During this device formation, there is a volume shrinkage in the metal silicide which forms a narrow annulus of exposed silicon around the metal silicide contact. The unreacted metal is removed. Ion implantation of ion of opposite polarity to the exposed silicon is imparted to the structure to form a guardring surrounding the Schottky barrier device.