Oriented films are prepared. A thermoplastic vulcanizate, prepared by mixing at least 20 wt % of a thermoset rubber by weight of the total composition into a thermoplastic polymer are disclosed. After the mixture is prepared the thermoset rubber is entrained as discrete particles within the continuous thermoplastic polymer phase. The resulting composite is subjected to a stress either by pulling, blow molding, or any other film-forming process as is known in the art. This stress causes the continuous phase polymer molecules to become aligned or oriented in the direction in which the stress was applied, thus creating the oriented thermoplastic vulcanizate of the invention. This material has improved gas permeability and improved flexibility properties.