A MOSFET having a recessed channel and a method of fabricating the same. The critical dimension (CD) of a recessed trench defining the recessed channel in a semiconductor substrate is greater than the CD of the gate electrode disposed on the semiconductor substrate. As a result, the misalignment margin for a photolithographic process used to form the gate electrodes can be increased, and both overlap capacitance and gate induced drain leakage (GIDL) can be reduced.