Multilayer composite films consisting of polyolefins, either polypropylene, linear low density or medium density polyethylene, a thin adhesive layer, and a polyamide in various ratios were prepared using two basically different processes. The first, a conventional blown film process in which the extrudate is stretched while in the molten state; and the second, a two‐stage process in which the quenched extrudate is stretched at a temperature below the polymers' melting point. The films so prepared, having identical composition and similar extents of stretching, were compared on the basis of their tensile properties, thermoelastic shrinkage, oxygen transmission rate, and thermal behavior. The effects of stretching temperature, rate, and extent on the behavior of the composite films and control single layer films were investigated. The stretching temperature was found to be the dominating single process parameter in determining the films' behavior. The overall performance including tensile properties, barrier, and shrink properties of the “cold” stretched films was found markedly superior to that of the conventionally blown films. The stretched composite films possess physical properties that cannot be attained by the conventional process.