The present disclosure provides a light emitting diode package including a substrate, a first electrode and a second electrode located on a first surface of the substrate, a plurality of light emitting diodes (LEDs) located between the first electrode and the second electrode, a plurality of retaining ring located on the first surface of the substrate. The LEDs are surrounded by the retaining ring therein. An encapsulation layer is mounted in the retaining ring and covers the LEDs therein. The encapsulation layer includes a first surface and an side surface extending from edges of the first surface. The side of the encapsulation layer contacts an inner surface of the retaining ring. The present disclosre also provides a method for manufacturing the above light emitting diode package.