A packaging structure with groove includes a substrate, a lower conductive layer, an optical element, a sealing layer and a barrier layer. The lower conductive layer is arranged on one face of the substrate. The optical element is arranged on one face of the lower conductive layer. The upper conductive layer is arranged on one face of the optical element. The packaging structure further comprises a groove defined on an inactive area of the optical element. The sealing layer is arranged on one face of the optical element and on one face of the upper conductive layer. The barrier layer is arranged on one face of the sealing layer. Because the groove is formed on inactive area of the optical element to enhance lateral sealing tightness, extended interface is provided between sealing layer/barrier layer and the substrate, thus enhance the water-resistant and gas-resistant property for package.