To provide a semiconductor device suitable for miniaturization. To provide a highly reliable semiconductor device. To provide a semiconductor device formed using an oxide semiconductor and having favorable electrical characteristics. A semiconductor device includes an island-shaped semiconductor layer over an insulating surface; a pair of electrodes in contact with a side surface of the semiconductor layer and overlapping with a part of a top surface of the semiconductor layer; an oxide layer located between the semiconductor layer and the electrode and in contact with a part of the top surface of the semiconductor layer and a part of a bottom surface of the electrode; a gate electrode overlapping with the semiconductor layer; and a gate insulating layer between the semiconductor layer and the gate electrode. In addition, the semiconductor layer includes an oxide semiconductor, and the pair of electrodes includes Al, Cr, Cu, Ta, Ti, Mo, or W.