An active matrix organic electroluminescent device with a thermal insulation structure and fabrication method thereof. The active matrix organic electroluminescent device comprises a plurality of pixel areas arranged in a matrix form. Each pixel area comprises a TFT, an OLED and a thermal insulation structure formed between the OLED and the TFT. The thermal insulation structure insulates the OLED from the heat generated by the TFT under operation, resulting in high luminescent efficiency and extended lifetime of the device.