A method for manufacturing of an integrated circuit package-in-package system includes: mounting a first integrated circuit device over a substrate; mounting an integrated circuit package system having an inner encapsulation over the first integrated circuit device with a first offset; mounting a second integrated circuit device over the first integrated circuit device and adjacent to the integrated circuit package system; connecting the integrated circuit package system and the substrate; and forming a package encapsulation as a cover for the first integrated circuit device, the integrated circuit package system, and the second integrated circuit device.