Abstract— We have developed a new technique for the production of thin crystal film (TCF) by deposition, molecular alignment, and the drying of water‐based lyotropic‐liquid‐crystal (LLC) materials. TCF exhibits high optical anisotropy and birefringence. This paper presents liquid‐crystal‐display (LCD) applications and opportunities for TCF plastic sheet polarizers, retarders, and color‐correction films as well as LCD designs with TCF internal polarizers.