A method of manufacture of an integrated circuit packaging system includes: providing a leadframe having a partially removed portion including: a conductive pattern having a lower surface on a top frame surface of the leadframe, a contact protrusion and a support lead on the lower surface of the conductive pattern, the support lead for supporting the partially removed portion of the leadframe during an encapsulation process, and a contact pad on a bottom surface of the contact protrusion; mounting an integrated circuit die above the conductive pattern; applying an encapsulation on the integrated circuit die and the conductive pattern, the lower surface of the conductive pattern exposed from the encapsulation; and removing at least a portion of the leadframe to form a contact lead and expose a bottom surface of the encapsulation.