A proximity sensor having a relatively small footprint includes a substrate, a semiconductor die, a light emitting device, and a cap. The light emitting device overlies the semiconductor die. The semiconductor die is secured to the substrate and includes a sensor area capable of detecting light from by the light emitting device. The cap also is secured to the substrate and includes a light barrier that prevents some of the light emitted by the light emitting device from reaching the sensor area. In one embodiment, the light emitting device and the semiconductor die are positioned on the same side of the substrate, wherein the light emitting device is positioned on the semiconductor die. In another embodiment, the light emitting device is positioned on one side of the substrate and the semiconductor die is positioned on an opposing side of the substrate.