It is an object to provide a memory device where an area occupied by a memory cell is small, and moreover, a memory device where an area occupied by a memory cell is small and a data holding period is long. A memory device includes a bit line, a capacitor, a first insulating layer provided over the bit line and including a groove portion, a semiconductor layer, a second insulating layer in contact with the semiconductor layer, and a word line in contact with the second insulating layer. Part of the semiconductor layer is electrically connected to the bit line in a bottom portion of the groove portion, and another part of the semiconductor layer is electrically connected to one electrode of the capacitor in a top surface of the first insulating layer.