A new fabrication process using ion milling has been developed for 0.5‐μm finger period SAW filters, Electron‐resist (PMMA) patterns are transferred to a 200‐Å‐thick Ti film using liftoff, followed by oxygen ion‐beam etching, in order to transfer the Ti patterns to a 1900‐Å‐thick AZ 1350 film. The two‐step mask transfer process yields high‐durability masks. Using argon ion‐beam etching, 700‐Å‐thick Al electrodes are delineated. The etching masks are easily removed by oxygen plasma, because the Ti film is etched away during the Al etching. A desirable shape for delineated electrodes is obtained by adjusting the AZ 1350 film thickness. A 0.5‐μm finger period SAW filter, fabricated using the process, shows 7dB insertion loss at 1.89 GHz.