Integrated circuit packaging system with film assistance mold and method of manufacture thereof

A method of manufacture of an integrated circuit packaging system comprising:

• providing a substrate;
• mounting an integrated circuit over the substrate, the integrated circuit having an inactive side and a non-horizontal side;
• mounting a mold chase having a buffer layer over the integrated circuit;
• forming an encapsulation between the substrate and the buffer layer;
• and
• removing the mold chase, leaving the encapsulation having a recess exposing a portion of the non-horizontal side at a topside of the encapsulation.

An integrated circuit packaging system comprising:

• a substrate;
• an integrated circuit over the substrate, the integrated circuit having an inactive side and a non-horizontal side;
• and
• an encapsulation on the integrated circuit and the substrate, the encapsulation having a recess exposing a portion of the non-horizontal side.