Abstract: A process for fabricating MOSFET devices with a recessed lightly doped drain, (LDD), has been developed. This process initially involves conventional techniques of forming a silicided polysilicon, (polycide), gate structure, isolated from the silicided source and drain regions by a spacer sidewall insulator. The novel aspect of this process consists of removing the spacer insulator and etching a trench in the region between the metal silicided source/drain and the polycide gate structure. An angled ion implant is then performed to form lightly doped drain regions in the trench region, also extending under the polycide gate. This results in a narrowing of the channel length, thus enhancing device performance.