A method of manufacturing a display panel and a display panel are provided. A groove is formed on a buffer layer through performing exposure and etching processes, so as to divide the buffer layer into independent units. A gate insulating layer, a dielectric layer, and a passivation layer are converted from continuous layers to independent layers on the buffer layer. Therefore, heterogeneous interface stress accumulated in the independent unit is reduced, it prevents the deformation of the glass substrate, protects the glass substrate, reduces fragmentation phenomenon, and improves process reliability and yield.