The present disclosure provides a package substrate and method of manufacturing the same. The package substrate includes a substrate, an electronic component and a conductive trace. The electronic component is disposed in the substrate, and the electronic component includes a magnetic layer and a conductive wire. The conductive wire includes a first section embedded in the magnetic layer, and a second section connected to the first section and thinner than the first section. A first upper surface of the first section is covered by the magnetic layer, a second upper surface of the second section is lower than the first upper surface, and the magnetic layer includes a first recess disposed in the upper surface and exposing the second upper surface of the second section. The first conductive trace is in the first recess and electrically connected to the second upper surface of the second section of the conductive wire.