A transistor with a multi-layer active layer having at least one partial recess is provided. The transistor includes a channel layer arranged over a substrate. The channel layer has a first bandgap. The transistor includes a first active layer arranged over the channel layer. The first active layer has a second bandgap different from the first band gap such that the first active layer and the channel layer meet at a heterojunction. The transistor includes a second active layer arranged over the first active layer. The transistor also includes a dielectric layer arranged over the second active layer. The transistor further includes gate electrode having gate edges that are laterally adjacent to the dielectric layer. At least one gate edge of the gate edges is laterally separated from the second active layer by a first recess.