A package structure is provided. The package structure includes a substrate including a cavity and a plurality of thermal vias connecting a bottom surface of the cavity to a bottom surface of the substrate. The package structure also includes an electronic device disposed in the cavity and thermally coupled to the plurality of thermal vias. The package structure further includes a plurality of conductive connectors formed over the electronic device and vertically overlapping the plurality of thermal vias. The package structure also includes an encapsulating material extending from top surfaces of the plurality of conductive connectors to the bottom surface of the cavity. The package structure further includes an insulating layer formed over the encapsulating material and including a redistribution layer structure electrically connected to the electronic device through the plurality of conductive connectors.