A method of manufacturing a semiconductor memory device comprises forming floating gates on active regions of a semiconductor substrate and forming a capping layer on the floating gates. An isolation layer located in the semiconductor substrate between the floating gates is anisotropically etched using the capping layer as an etch mask to form recessed regions. The recessed regions are formed to have a width smaller than a distance between the floating gates, and bottom surfaces positioned below bottom surfaces of the floating gates. Control gate electrodes are formed across the active regions over the floating gates and the control gate electrodes have control gate extensions formed within the recessed regions between the floating gates.