An integrated circuit packaging system is provided including forming a first device wafer having a first backside and a first active side; forming a waferscale spacer wafer having a waferscale spacer and a first opening; mounting the waferscale spacer wafer on the first backside; and singulating an first integrated circuit die having the waferscale spacer from the first device wafer having the first backside with the waferscale spacer wafer thereon.