The PVA thermal shrinkage film has excellent water soluble and biological degradation performance. Currently the production methods of PVA film mainly contain salivation (wet) and extrusion blow molding (dry) method while the thermal shrinkage process can be divided into one-step and two-step approach. The degree of crystallinity in PVA film can be reduced through plasticizing modification, thus to increase thermal shrinkage performance. Plasticizer is the main influencing factor in the plasticizing modification in the process. The main factor in drawing process is the tensile temperature and draw ratio. Cooling temperature and uniformity in cooling are main influencing factors in quenching technology. Thermal shrinkage temperature is the main influencing factor in shrinkage process. The market of PVA thermal shrinkage film application is promising, and the future research is mainly direceted at new types of green degradable heat shrinkable packaging film.