This paper presents the development of an advanced packaging technique for commercially available optoelectronic devices. Vertical Cavity Surface Emitting Laser diodes and Photodiodes are thinned down to 20 µm thickness, and are embedded in flexible carriers, resulting in a 75 µm thin package, which can be bent down to a bending radius of 2 mm. Electrical, optical and mechanical characterization addresses the influence of thinning and embedding of bare optoelectronic chips on their main properties. Next to the embedded optoelectronics, also electrical Integrated Circuits like amplifiers and drivers can be housed in the same thin flexible package, using an identical technology and layer build-up. Finally, this new packaging approach is demonstrated in two different integrated sensor applications and in an integrated optical interconnection. For the latter application, also waveguides and optical out-of-plane coupling elements are integrated in the package and the complete system reliability is assessed by accelerated aging tests.