An electro-optical device includes a pair of substrates including a first substrate and a second substrate, an electro-optical material sandwiched between the pair of substrates, a shading film having a predetermined pattern which is at least partially embedded in the first substrate at the surface facing the electro-optical material, display electrodes which are placed on the second substrate at the surface facing the electro-optical material, and lines connected to the display electrodes directly or through switching elements. In accordance with the electro-optical device having such a shading film, it is possible to reduce or prevent coating defects in an alignment layer, nonuniform rubbing treatment to the alignment layer, and cracking of a counter electrode due to the steps in the upper layers resulting from the formation of the shading film.