A self-aligned contact is formed in a multi-layer semiconductor device. In one form, conductive members are formed overlying a substrate material and a first insulating layer is deposited overlying the substrate material and the conductive members. A film of material is deposited on the first insulating layer and the film of material is patterned to form a sacrificial plug in an area where a contact is to be made. A second insulating layer is deposited on the device, and the device is made substantially planar. The second insulating layer is etched back to expose the sacrificial plug. The sacrificial plug is removed by selectively etching the device such that the first and second insulating layers are left substantially unaltered. An anisotropic etch of the device is performed to expose an area of the substrate material on which a contact is to be made, and to simultaneously form sidewall spacers along edges of the conductive members. A conductive layer is deposited onto the device and patterned, thereby forming a self-aligned contact.