Package structure and manufacturing method thereof

A package structure including a first die, a second die, an encapsulant, a dam structure, a light-transmitting sheet, a conductive connector, a circuit layer, and a conductive terminal is provided. The first die includes a first active surface. The first active surface has a sensing area. The second die is arranged such that a second back surface thereof faces the first die. The encapsulant covers the second die. The encapsulant has a first encapsulating surface and a second encapsulating surface. The dam structure is located on the first encapsulating surface and exposes the sensing area. The light-transmitting sheet is located on the dam structure. The conductive connector penetrates the encapsulant. The circuit layer is located on the second encapsulating surface. The first die is electrically connected to the second die through the conductive connector and the circuit layer. The conductive terminal is disposed on the circuit layer.