System integration and miniaturization needs are the driving factors for embedding active and passive components within packages. But embedding components also results in unwanted interferences within the package. This paper demonstrates chip-package interaction in the form of electromagnetic interference between the embedded chip and its package. The electromagnetic coupling experienced by the bond-pads of the embedded chip, the effect of bulk substrate of the embedded chip on the coupling across the package and the influence of die to cavity clearance on the vertical electromagnetic coupling across the different layers of the package housing the embedded chip are analyzed. Results from simulations and measurements are presented to demonstrate the phenomena studied.