The present invention provides a package structure and fabrication method thereof. The method includes providing a first carrier having a metal layer; forming a dielectric layer on the metal layer; forming a plurality of conductive pillars embedded into the dielectric layer and protruding from a surface of the dielectric layer, and disposing an electronic component on the surface of the dielectric layer; forming an encapsulating layer on the dielectric layer to encompass the plurality of conductive pillars, the dielectric layer and the electronic component; removing a portion of the encapsulating layer and the first carrier such that two ends of each of the plurality of conductive pillars are exposed from the encapsulating layer and the dielectric layer. Therefore, the present invention effectively reduces manufacturing costs and the need for an opening process while manufacturing the conductive pillars can be eliminated.