Provided is a method of fabricating a pseudomorphic high electron mobility transistor (PHEMT). The method includes the steps of: preparing a substrate including a channel layer and a capping layer that is the uppermost layer; forming a source and a drain on the capping layer; forming a first protective layer on the entire surface of the resultant structure and then patterning the first protective layer to expose a portion of the capping layer in a channel region; removing the exposed portion of the capping layer to form a first recess structure; forming a second protective layer on the entire surface of the resultant structure and then patterning the second protective layer to expose a portion of the substrate in the first recess structure so that a second recess structure is formed; forming a multilayered photoresist layer on the entire surface of the resultant structure and then patterning the multilayered photoresist layer to expose a portion of the substrate through the second recess structure and form a gate-shaped opening; and depositing a metal layer to fill the gate-shaped opening and then removing the multilayered photoresist layer to form a gate connected to the substrate through the second recess structure.