The invention discloses a thin film transistor, a fabrication method thereof, a display substrate and a display device. The thin film transistor comprises a substrate, an active layer, a grid, a grid insulation layer, an interlayer insulation layer, a source and a drain, wherein the active layer is arranged on the substrate, the grid insulation layer is arranged between the grid and the active layer, the projection of the grid on the active layer is overlapped with at least one part of a channel region of the active layer, the interlayer insulation layer is arranged at one side, far away from the substrate, of the active layer and comprises an organic transparent material, and the source and the drain are arranged at one side, far away the grid insulation layer, of the interlayer insulation layer and are connected with the active layer through a via hole. The thin film transistor has at least one of the following advantages that the membrane stress of the interlayer insulation layer can be reduced, a glass warping phenomenon is improved, the capacitance coupling effect between the source-drain and the grid is reduced, and the light transmittance is effectively improved.