In this paper, we proposed a photoelastic stress analysis method for transparent plastic film Cycle Olefin Copolymer (COC) transparent plastic film. From the residual stress data, we can modify the process of the COC flexible plastic substrate material. An image processing method is developed in this paper to compute the fringe number of photoelastic image. From the experiment’s data, a photoelastic stress model is setup. In this study, an image processing method for photoelastic image analysis. A set of compared data are used to evaluate the feasibility of this model. The results show that the error of this photoelastic stress model is within ±10%.And fatigue bending test for COC transparent plastic film, the repeated bending test by 100 to 1000 times, use the optical microscope to observe the surface breakdown cases of the plastic film.