A method of manufacturing a liquid crystal display device is intended to decrease the number of manufacturing steps. The liquid crystal display device is arranged so that in each pixel area provided on a liquid-crystal-side surface of one of a pair of substrates disposed to oppose each other with a liquid crystal interposed therebetween, a signal from a drain line is applied to a pixel electrode via a drain electrode and a source electrode which are formed in a layer overlying a semiconductor layer of a thin film transistor, by the supply of a scanning signal from a gate electrode which is positioned as an underlying layer with respect to the semiconductor layer. The method of manufacturing such liquid crystal display device includes the steps of: forming a stacked structure in which the semiconductor layer and a first conductive layer are sequentially stacked in the same pattern, in both an area for forming the drain signal and an area for forming the thin film transistor; and after forming a second conductive layer, by using the same mask, providing separation between the drain electrode and the source electrode of the thin film transistor and also forming the pixel electrode connected to the source electrode.