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In this letter, we present the deployment of Schottky source/drain (SSD) in InAlN/GaN metal-insulator-semiconductor high-electron-mobility transistors (MISHEMTs) for off-state breakdown voltage improvement. The improved breakdown voltage relies on the suppression of electron injection into the buffer under the Schottky source contact. A VBD of 460 V is obtained in an SSD MISHEMT with an LGD = 10 μm, at a 170% improvement compared with that of the control MISHEMT featuring ohmic source/drain. Despite the SSD contacts, an SSD MISHEMT with a gate length of 1 μm exhibits a respectable drain current density of 416 mA/mm and a transconductance of 113 mS/mm.