To provide a highly reliable semiconductor device including a transistor using an oxide semiconductor. After a source electrode layer and a drain electrode layer are formed, an island-like oxide semiconductor layer is formed in a gap between these electrode layers so that a side surface of the oxide semiconductor layer is covered with a wiring, whereby light is prevented from entering the oxide semiconductor layer through the side surface. Further, a gate electrode layer is formed over the oxide semiconductor layer with a gate insulating layer interposed therebetween and impurities are introduced with the gate electrode layer used as a mask. Then, a conductive layer is provided on a side surface of the gate electrode layer in the channel length direction, whereby an Lov region is formed while maintaining a scaled-down channel length and entry of light from above into the oxide semiconductor layer is prevented.