A heat dissipating package structure includes a chip carrier; a semiconductor chip mounted and electrically connected to the chip carrier; a heat spreader having a first surface, an opposed second surface and a hollow structure, the second surface of the heat spreader being mounted on the chip, wherein the chip is larger in size than the hollow structure such that the chip is partly exposed to the hollow structure; an encapsulant formed between the heat spreader and the chip carrier, for encapsulating the chip, wherein the first surface and sides of the heat spreader are exposed from the encapsulant to dissipate heat produced from the chip; and a plurality of conductive elements disposed on the chip carrier, for electrically connecting the chip to an external device. The present invention also provides a method for fabricating the heat dissipating package structure.