In this work, an AlGaN/GaN power diode with edge-terminated Schottky/ohmic hybrid (ETH) anode is proposed. 2-D simulation is carried out to study the characteristics of the ETH-diode. The forward onset voltage Von of the device can be modulated by thinning the barrier thickness beneath the Schottky gate region of the hybrid anode. With remaining AlGaN-barrier of 5 nm the Von as low as 0.25 V is achieved in ETH-Diode. Comparing with the reference device the edge-termination (ET) integrated into the ETH-Diode enabling more than 5-order and 2-order leakage current reduction at −100 V and −300 V, respectively. Correspondingly, even using a more stringent criterion the breakdown voltage (BV) is improved from 400 V at Ileakage=10 µA/mm to 510 V at Ileakage=1 µA/mm in a device with anode-cathode spacing of 5 µm due to the employment of the edge-termination. By using a 2 µm field plate the BV of the ETH-Diode can be further improved to 800 V.