A semiconductor saturable absorber and the fabrication method thereof are provided. The semiconductor saturable absorber includes a Fe-doped InP substrate, a periodic unit comprising an AlGaInAs QW formed on the Fe-doped InP substrate and an InAlAs barrier layer formed on one side of the AlGaInAs QW, and another InAlAs barrier layer formed on the other side of the AlGaInAs QW. Each of the InAlAs barrier layers has a width being a half-wavelength of a light emitted by the AlGaInAs QW.