A method of forming an embedded wafer level optical package includes attaching a sensor die, PCB bars and an LED on adhesive tape laminated on a carrier, attaching a dam between two light sensitive sensors of the sensor die, encapsulating the sensor die, the PCB bars, the LED, and the dam in an encapsulation layer, debonding the carrier, grinding a top surface of the encapsulation layer, forming vias through the encapsulation layer to the sensor die and the LED, filling the vias with conductive material, metalizing the top surface of the encapsulation layer, dielectric coating of the top surface of the encapsulation layer, dielectric coating of a bottom surface of the encapsulation layer, patterning the dielectric coating of the bottom surface of the encapsulation layer, and plating the patterned dielectric coating of the bottom surface of the encapsulation layer.