An integrated circuit package-on-package system includes: mounting an integrated circuit package system having a mountable substrate over a package substrate; forming a package encapsulation having both a recess and an anti-mold flash feature over the package substrate and the integrated circuit package system including: forming the anti-mold flash feature having an extension width at the bottom of the recess, and partially exposing the mountable substrate in the recess with the anti-mold flash feature over mountable substrate; and mounting an integrated circuit device over the mountable substrate in the recess.