The invention relates to a composite cooling positive electrode-based GaN planar gunn diode and a fabrication method thereof. The planar gunn diode comprises an AlGaN back barrier layer, a GaN channellayer, an AlGaN barrier layer, an ohmic contact positive electrode, an ohmic contact negative electrode and a Schottky extension layer, wherein the GaN channel layer is arranged on the AlGaN back barrier layer, the AlGaN barrier layer is arranged on the GaN channel layer, the ohmic contact positive electrode and the ohmic contact negative electrode are respectively arranged at two ends of the AlGaN back barrier layer, the GaN channel layer and the AlGaN barrier layer, and the Schottky extension layer is arranged on the AlGaN barrier layer and covers the ohmic contact positive electrode. The Schottky extension layer of the planar gunn diode forms a depletion layer in a channel of the planar gunn diode, the strength of high-energy dipole domain is reduced, so that the energy of electronic domain is dispersed, the collision ionization of a positive electrode end of the planar gunn diode is reduced, heat generation is buffered, the self-heating effect of a device is further effectively prevented, and the negative resistance effect, the power and the frequency of the device are improved.