In this letter, new approach in achieving high breakdown voltages in AlGaN/GaN heterostructure field-effect transistors (HFETs) by suppressing surface flashover using solid encapsulation material is presented. Surface flashover in III-Nitride-based HFETs limits the operating voltages at levels well below breakdown voltages of GaN. This premature gate-drain breakdown can be suppressed by immersing devices in high-dielectric-strength liquids (e.g., Fluorinert); however, such a technique is not practical. In this letter, AlGaN/GaN HFETs encapsulated with PECVD-deposited SiO2 films demonstrated breakdown voltage of 900 V, very similar to that of devices immersed in Fluorinert liquid. Simultaneously, low dynamic ON-resistance of 2.43 mOmega ldr cm2 has been achieved, making the developed AlGaN/GaN HFETs practical high-voltage high-power switches for power-electronics applications.