We have proposed and fabricated a new poly-Si TFT employing air-cavities at the edges of gate oxide in order to reduce the vertical electric field induced near the drain due to low dielectric constant of air. Air-cavity has been successfully fabricated by employing the wet etching of gate oxide and APCVD (Atmospheric pressure chemical vapor deposition) oxide deposition. Our experimental results show that the leakage current of the proposed TFT is considerably reduced by the factor of 10 and threshold voltage shift under high gate bias is also reduced because the carrier injection into gate insulator over the drain depletion region is suppressed.