Green's function technique serves as a powerful tool to find the particle displacements due to SH‐wave propagation in layer of a shape different from the space between two parallel planes. Therefore, the present paper undertook to study the propagation of SH‐wave in a transversely isotropic piezoelectric layer under the influence of a point source and overlying a heterogeneous substrate using Green's function technique. The coupled electromechanical field equations are solved with the aid of Green's function technique. Expression for displacements in both layer and substrate, scalar potential and finally the dispersion relation is obtained analytically for the case when wave propagates along the direction of layering. Numerical computations are carried out and demonstrated with the aid of graphs for six different piezoelectric materials namely PZT‐5H ceramics, Barium titanate (BaTiO3) ceramics, Silicon dioxide (SiO2) glass, Borosilicate glass, Cobalt Iron Oxide (CoFe2O4), and Aluminum Nitride (AlN). The effects of heterogeneity, piezoelectric and dielectric constants on the dispersion curve are highlighted. Moreover, comparative study is carried out taking the phase velocity for different piezoelectric materials on one hand and isotropic case on the other. Dispersion relation is reduced to well‐known classical Love wave equation with a view to illuminate the authenticity of problem. Copyright © 2017 John Wiley & Sons, Ltd.