In this paper, an alternative selective dry etching of p-GaN over InAlN was studied as a function of the ICP source powers, RF chuck powers and process pressures by using inductively coupled plasma reactive ion etching (ICP RIE) system. A recipe using only BCI3-based plasma with a resulting selectivity 13.5 for p-GaN in respect to InAlN was demonstrated. Surface roughness measurements depending on the etching time was performed by atomic force microscope (AFM) measurement and showed that a smooth etched surface with the root-mean-square roughness of 0.45 nm for p-GaN and 0.37 nm for InAlN were achieved. Normally-off p-GaN/InAlN HEMT devices were fabricated and tested by using the BCI3-based plasma we developed.