A stackable integrated circuit package system includes: a substrate having a first side and a second side opposite the first side, the substrate having a cavity provided therein; a first integrated circuit die in the cavity with a first interconnect extending out from the cavity without connection and a second interconnect connected to the first side; a first mold compound to cover the first integrated circuit die, the second interconnect, and a portion of the first interconnect; a second integrated circuit die mounted to the first integrated circuit die with a third interconnect connected to the second side; a second mold compound to cover the second integrated circuit die and the third interconnect; and external interconnects, not encapsulated by the second encapsulant, mounted on the second side.