A fabricating method of display panel is provided. A first substrate having display area and non-display area is provided. A pixel array is formed in the display area of the first substrate, and at the same time, a spacer layer is formed in the non-display area. The spacer layer surrounds the display area. Next, a sealant is formed in the non-display area, and the spacer layer is disposed between the sealant and the pixel array. A second substrate is arranged above the first substrate, and the first substrate and the second substrate are fixed by using the sealant. The spacer layer can prevent the overflow sealant from contaminating the devices in the panel. The spacer layer is formed during the fabricating process of the pixel array, so that no extra fabrication cost is needed.