Abstract AlN/diamond heterojunction field effect transistors with p-channel and normally-on depletion mode are developed, and the device performance is improved by reducing the contact resistances at source and drain contacts reported previously. The heterojunction structure is constructed from a c-axis-oriented AlN epilayer grown on oxygen-terminated (111) diamond substrate by metal-organic vapor phase epitaxy at temperatures as high as 1250 °C. Thermal treatment in the mixed hydrogen (H2) and ammonia atmosphere just before AlN growth improves the AlN adhesion to diamond surface. In addition, this treatment simultaneously produces a much larger surface hole-carrier density than that obtained by conventional H2-plasma treatment. X-ray photoelectron spectroscopy reveals the existence of carbon-nitrogen bonds at the diamond surface, and these may be responsible for such a large hole density. These results are promising in relation to new opportunities for developing diamond-based power electronic devices.