The present invention provides a light emitting diode (LED) package and the fabrication method thereof. The LED package includes a lower metal layer, and a first silicon layer, a first insulation layer, a second silicon layer, a second insulation layer, and a package electrode pattern formed in their order on the lower metal layer. The LED package also includes a spacer having a cavity, formed on the electrode pattern. The LED package further includes an LED mounted in the cavity by flip-chip bonding to the electrode patterns, and an optical element attached to the upper surface of the spacer.