An LED includes a base, a pair of leads fixed on the base, a housing fixed on the leads, a chip mounted on one lead and an encapsulant sealing the chip. The housing defines a cavity in a central area thereof and a chamber adjacent to a circumferential periphery thereof. Top faces of the leads are exposed in the chamber. A blocking wall is formed in the chamber to contact the exposed top faces of the leads. A bonding force between the blocking wall and the leads is larger than that between the leads and the housing. A method for manufacturing the LED is also disclosed.