A heat-shrinkable polylactic acid (PLA) film and a method of its manufacture are provided. In an exemplary embodiment, the PLA films exhibit heat-induced growth in the cross direction with concomitant shrinkage in the machine direction. The films may comprise any grade of PLA polymer, optionally including additives, such as antiblock, slip, viscosity enhancers and combinations thereof. A method of manufacture is disclosed which includes a post-extrusion temperature conditioning step.