A light emitting diode (LED) packaging method includes the steps of preparing a circuit board (1), a transparent cap (3), and at least one LED material (2), placing the transparent cap (3) on the LED material (2) such that the circuit board (1) is aligned and superimposed, and forming an encapsulation layer (4) having a light pattern on the transparent cap (3) by an in-mold decoration injection molding process. In the in-mold decoration injection molding process, a filling port (511) of a mold (5) is aligned precisely above the LED material (2) to prevent a deviation of the LED material (2) and omit a surface mount technology (SMT) process, so as to integrally form an LED with a light pattern at the same time and achieve good water-resisting and static charge resisting effects.