We systematically investigated the effect of the thermal oxidation treatment on the performance of AlGaN/GaN high electron mobility transistors (HEMTs). The HEMTs with thermal oxidation treatment exhibit four orders of magnitude reduction in gate leakage current, 80% reduction of trap density, and more than two times improvement of off-state drain breakdown voltage, compared with those shown by HEMTs without thermal oxidation treatment. The simplicity in the thermal oxidation treatment process, coupled with the drastic improvement in device performance render the thermal oxidation treatment highly promising for GaN-based microwave power amplifier applications in communication and radar systems.