Abstract: A substrate is pulled to a stretch ratio, and a liquid crystal material is then spread on a surface of the substrate to form a liquid crystal layer. Next, a protection layer is adhered onto the liquid crystal layer, thus forming an optical compensation film. The manufacturing of the optical compensation film uses substrate extension to replace a conventional alignment layer technique; the manufacturing efficiency and yield are therefore raised, and the manufacturing cost is reduced. Moreover, the arrangement uniformity of liquid crystal molecules is substantially improved, thus effectively enhancing the compensation and optical performance thereof.