We report on the nano-fabrication of GaN/AlGaN device structures using focused ion beam (FIB) etching, illustrated on a GaN/AlGaN heterostructure field effect transistor (HFET). Pillars as small as 20nm to 300nm in diameter were fabricated from the GaN/AlGaN HFET. Micro-photoluminescence and UV micro-Raman maps were recorded from the FIB-etched pattern to assess its material quality. Photoluminescence was detected from 300nm-size GaN/AlGaN HFET pillars, i.e., from the AlGaN as well as the GaN layers in the device structure, despite the induced etch damage. Properties of the GaN and the AlGaN layers in the FIB-etched areas were mapped using UV Micro-Raman spectroscopy. Damage introduced by FIB-etching was assessed. The fabricated nanometer-size GaN/AlGaN structures were found to be of good quality. The results demonstrate the potential of FIB-etching for the nano-fabrication of III-V nitride devices.