A heat-shrinkable polylactic acid (PLA) film and a method of its manufacture are provided. In an exemplary embodiment, the PLA films exhibit heat-induced shrinkage in the transverse direction with little to no concomitant shrinkage in the machine direction. The films may comprise any grade of PLA polymer, optionally including additives, such as antiblock, slip, plasticizers, viscosity enhancers and combinations thereof. A method of cast and tenner manufacture is disclosed, which includes a temperature conditioning step.