We report on the electrical characteristics of AlGaN/GaN high-electron mobility transistors (HEMTs) with hexagonal boron nitride (h-BN) as a passivation capping layer. The HEMTs with h-BN layers showed an increase in current drainage and 103-times reduction in the gate-leakage current compared with those of conventional unpassivated HEMTs. Moreover, the extrinsic transconductance and the pulse responses were improved due to the reduced charge-trapping effect at the surface of HEMTs. From our observations, the h-BN can be used as a passivation capping layer for high-power electronic devices.