A method of manufacture of a thin package system with external terminals includes: providing a leadframe; providing a template for defining an external bond finger; forming external bond fingers in the template on the leadframe; forming land pad terminals by a first multi-layer plating; providing a die; attaching the die to the land pad terminals above the leadframe with an adhesive on the leadframe; covering an encapsulant over at least portions of the die and the external bond fingers; and removing the leadframe leaving a surface of the adhesive coplanar with a surface of the encapsulant.