The etching of p‐GaN requires extremely strict control over etching depth and morphology; otherwise, it will result in poor electrical characteristics. This work uses ALD(Atomic layer deposition) in situ N2 plasma and postanneal‐assisted passivation to effectively recover the electrical properties degraded by p‐GaN etching. Compared to unpassivated devices, this approach eliminates surface oxygen bonds, recovering drain current from 10 to 126 mA mm−1, reducing gate leakage by an order of magnitude, achieving an ON/OFF current ratio exceeding 108, a breakdown voltage of 930 V at 1 μA mm−1, and effectively suppressing current collapse.