Some embodiments relate to an embedded memory device with vertically stacked source, drain and gate connections. The semiconductor memory device includes a substrate and a pillar of channel material extending in a first direction. A bit line is disposed over the pillar of channel material and is coupled to the pillar of channel material, and extends in a second direction that is perpendicular to the first direction. Word lines are on opposite sides of the pillar of channel material and extend in a third direction. The third direction is perpendicular to the second direction. A dielectric layer separates the word lines from the pillar of channel material. Source lines extend in the third direction over the substrate, directly beneath the word lines. Variable resistance memory layers are between the source lines and an outer sidewall of the dielectric layer, laterally surrounding the sidewalls of the pillar of channel material.