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We report an Al0.3Ga0.7N-Al0.05Ga0.95N-GaN composite-channel HEMT with enhanced linearity. By engineering the channel region, i.e., inserting a 6-nm-thick AlGaN layer with 5% Al composition in the channel region, a composite-channel HEMT was demonstrated. Transconductance and cutoff frequencies of a 1 ×100 μm HEMT are kept near their peak values throughout the low- and high-current operating levels, a desirable feature for linear power amplifiers. The composite-channel HEMT exhibits a peak transconductance of 150 mS/mm, a peak current gain cutoff frequency (fT) of 12 GHz and a peak power gain cutoff frequency (fmax) of 30 GHz. For devices grown on sapphire substrate, maximum power density of 3.38 W/mm, power-added efficiency of 45% are obtained at 2 GHz. The output third-order intercept point (OIP3) is 33.2 dBm from two-tone measurement at 2 GHz.