Heat-shrinkable films have widely been used for various applications such as shrinkable labels and cap seals. These plastics have generally a short life. The biodegradable polymers can thus be an ideal candidate for such applications. This work aimed to study the stretching and shrinking ratio of poly(lactic acid)/ethylene vinyl acetate through reactive blends system for heat-shrinkable films application. The reactive agents, Joncryl® and Perkadox were used as in situ compatibilizers. PLA/EVA with 100/0, 97/3, 95/5, 93/7, and 90/10 ratios were prepared in the twin screw extruder. Neat PLA and PLA/EVA films were fabricated by blown film extrusion. The results revealed that the elongation at break of PLA in the TD direction was improved when adding EVA. PLA and EVA film with 0.1 phr of Perkadox was found to be sufficient as evident by FESEM micrograph and DMTA results. The films were stretched and shrunk at a temperature of 70 °C. The percentage of shrinkage of the stretched PLA/EVA reactive blend films, two and three times were, 100%, approximately. On the other hand, the four-times stretched films shrunk less than 100% because of the excessive stretching, which resulted in film breakage and defect.