A chip package and a fabrication method thereof are provided. The chip package includes a semiconductor substrate, having a first surface and an opposing second surface. A spacer is disposed under the second surface of the semiconductor substrate and a cover plate is disposed under the spacer. A recessed portion is formed adjacent to a sidewall of the semiconductor substrate, extending from the first surface of the semiconductor substrate to at least the spacer. Then, a protection layer is disposed over the first surface of the semiconductor substrate and in the recessed portion.