The semiconductor memory device includes a cell transistor having a gate insulating film deposited on an inner surface of a groove formed in an upper surface of the semiconductor substrate, a gate electrode buried in the groove with the gate insulating film formed on the inner surface thereof, and a source region and a drain region formed on an upper surface of the active area of the semiconductor substrate on opposite sides of the gate electrode. The semiconductor memory device includes an MTJ element having a variable resistance that varies with a direction of magnetization that is provided on the source region and electrically connected to the source region at a first end thereof.