An exposure apparatus is provided with a projection optical system, and the projection optical system includes a first optical element disposed most closely to an image plane of the projection optical system. The exposure apparatus includes a first liquid immersion mechanism which forms a first liquid immersion area of a first liquid between the first optical element and an upper surface of a transparent member provided on a side of the image plane of the projection optical system, and an observation unit which observes a state of the first liquid immersion area. It is possible to grasp the state of the liquid immersion area of the liquid, thereby executing optimum liquid immersion exposure.