Methods of forming integrated circuit packages having an LED molded into the package, and the integrated circuit package formed thereby. An integrated circuit including one or more semiconductor die, passive components and an LED may be assembled on a panel. The one or more semiconductor die, passive components and LED may all then be encapsulated in a molding compound, and the integrated circuits then singularized to form individual integrated circuit packages. The integrated circuits are cut from the panel so that a portion of the lens of the LED is severed during the singularization process, and an end of the lens remaining within the package lies flush with an edge of the package to emit light outside of the package.