We demonstrated the reduction of leakage current (IG) with betterment of current collapse in Al0.25Ga0.75N/GaN Schottky gate (SG)-HEMT by improving metal/GaN interface using optimized ultraviolet-ozone (UV/O3) plasma treatment with post metal annealing modulation at 450°C. The X-ray photoelectron spectroscopy was used to verify the formation of GaOXNY layer at the metal/GaN interface. Owing to, the screening of the internal/external polarization charges by 10 min. UV/O3 surface plasma treatment and incremental increase of Schottky barrier height (ΦB) with post metal annealing modulation, resulted in the positive shifting of threshold voltage (VTH) in SG-HEMT. Due to the combined effects of the UV/O3 plasma treatment and metal annealing modulation, the magnitude of the interface trap density were effectively reduced to one order of magnitude, which further improved the current collapse significantly in SG-HEMT to 2.5% from 12.2%. The 10 min. UV/O3 treated SG-HEMT with PMA modulation exhibited decent performance with an IDMAX of 620 mA/mm, a GMMAX of 135 mS/mm, a VTH of −1.8 V, a higher ION/IOFF ratio of approximately 1.2×10^9, a subthreshold swing (SS) of 83 mV/dec, with a low gate leakage current of〖10〗^(-9) A/mm.