Parameter extraction is an important step for circuit simulation methods that are based on physical models of semiconductor devices. A novel physical parameter extraction approach for Schottky diodes is proposed in this paper. By employing a set of analytical formulas, this approach extracts all of the necessary physical parameters of the diode chip in a unique way. It then extracts the package parasitic parameters with a curve-fitting method. To validate the proposed approach, a model HSMS-282 c commercial Schottky diode is taken as an example. Its physical parameters are extracted and used to simulate the diode's electrical characteristics. The simulated results based on the extracted parameters are compared with the measurements and a good agreement is obtained, which verifies the feasibility and accuracy of the proposed approach.