In this paper, the physical mechanism and trap effect of AlGaN/GaN high electron mobility transistor HEMT with inductively couple plasma (ICP) based oxygen plasma treatment are investigated. Three devices with different oxygen plasma treatment conditions are fabricated and compared to a conventional device. To understand the physical mechanism of oxygen plasma treatment by ICP, the chemical composition change of the barrier layer is studied through X-ray photoelectron spectroscopy (XPS) and transmission electron microscope (TEM), and the Al molar composition changes of the barrier layer after oxygen plasma treatment are numerically calculated. By numerical calculation of the polarization effect, it is found that an increase in time and RF power of the ICP increase the oxidation effect while the etching effect is decreased. Meanwhile, the trap effect of the devices that has treated with oxygen plasma treatment is also studied. In this study, the authors found that the greater the RF power is, the great the number of deeplevel trap states introduced by oxygen plasma treatment. However, the effect of oxygen plasma treatment on trap states is relatively limited, indicating that the trap density introduced by the ICP-based oxygen plasma treatment is low.