A method of manufacture of an integrated circuit packaging system includes: forming a substrate; mounting a base integrated circuit on the substrate; forming a leadframe interposer, over the base integrated circuit, by: providing a metal sheet, mounting an integrated circuit die on the metal sheet, injecting a molded package body on the integrated circuit die and the metal sheet, and forming a ball pad, a bond finger, or a combination thereof from the metal sheet that is not protected by the molded package body; coupling a circuit package on the ball pad; and forming a component package on the substrate, the base integrated circuit, and the leadframe interposer.