The relationship between microstructure and toughness of biaxially stretched semicrystalline polyester films was investigated. Optically transparent films were prepared by simultaneous biaxial stretching of melt-cast sheets near the glass transition temperature. Copolyesters of polyethylene terephthalate (PET) with different compositions of two diols: ethylene glycol (EG) and cyclohexane dimethanol (CHDM), and stoichiometrically matched terephthalic acid were used to produce films with different degrees of crystallinity. In addition, the PET films with different crystalline morphologies were produced by constrained high temperature annealing of biaxially oriented films. The toughness, degree of crystallinity and crystalline MOFphology/molecular Ordering were studied using mechanical testing, synchrotron small-angle X-ray scattering (SAXS), wide-angle X-ray diffraction (WAXD) techniques, and differential scanning calorimetry (DSC). The results indicate that the toughness of a semicrystalline polymeric film is determined by the interconnectivity of the crystalline phase within the amorphous phase and is greatly influenced by the degree of crystallinity and the underlying crystalline morphology. (c) 2008 Elsevier Ltd. All rights reserved.