A method of manufacture of an integrated circuit packaging system includes providing a lead-frame having an inner portion and a bottom cover directly on a bottom surface of the inner portion; forming an insulation cover directly on the lead-frame with the insulation cover having a connection opening; connecting an integrated circuit die to the lead-frame through the connection opening with the integrated circuit die over the insulation cover; forming a top encapsulation directly on the insulation cover; forming a routing layer having a conductive land directly on the bottom cover by shaping the lead-frame; and forming a bottom encapsulation directly on the conductive land with the bottom cover exposed from the bottom encapsulation.