In this study, the stress-strain response and the cracking behaviors of ITO film on a PET substrate are investigated. The cracking behaviors of ITO thin films deposited on a thermoplastic semi-crystalline polymer developed for flexible display applications was investigated by means of tensile experiments equipped with an electrical measurement apparatus and an in-situ optical microscope. Electrical resistance increased gradually in the elastic-to-plastic transition region of the stress strain curves and cracks formed. Numerous cracks were found in this region, and the increase of the resistance was linked to the cracking of ITO thin films. Upon loading, the initial cracks perpendicular to the tensile axis were observed at about 1% of the total strain. They propagated to the entire sample width as the strain increased. The spacing between the horizontal cracks is thought to be determined by the fracture strength and the thickness of the ITO film as well as by the interfacial strength between the ITO and PET. The effect of the strain rate on the cracking behavior was also investigated. The crack density increased as the strain increased. The spacing between the horizontal cracks (perpendicular to the stress axis) increased as the strain rate decreased. The increase of the crack density as the strain rate decreased can be attributed to the higher fraction of the plastic strain to the total strain at a given total strain. The higher critical strain for the onset of the increase in the resistance and the crack initiation of the ITO/PET with a thinner ITO film (300 ohms/sq.) suggests a higher strength of the thinner ITO film.