An array substrate of an LCD and a fabricating method thereof are provided. A first insulating layer is formed on the substrate. A TFT and a hardened liquid crystal layer are provided in a pixel region of the substrate. A second insulating layer is formed in the pixel region around the hardened liquid crystal layer such that the second insulating layer and the hardened liquid crystal layer are substantially planar. A first alignment layer is formed between the hardened liquid crystal layer and the first insulating layer. A pixel electrode is formed on the second insulating layer and the hardened liquid crystal layer and contacts a drain region of the TFT through a hole in the first insulating layer. A second alignment layer is formed on the entire substrate over the second insulating layer and the hardened liquid crystal layer.