The basic mechanisms determining the formation of optical anisotropy in stretched, thin polymer dispersed liquid crystal (PDLC) films with micron sized nematic droplets have been studied experimentally and the results analysed in terms of a proposed theoretical model. The experiments were performed on PDLC films with the bipolar nematic director configuration in the droplets, where the film transmittance, microscopic structure, and birefringence of the polymer matrix were studied. It is shown that the orientational ordering of bipolar nematic droplets, introducing the main contribution to the ability of stretched PDLC film to polarize the transmitted light, is strongly dependent upon initial droplet shape and the elastic properties of the polymer matrix. The ‘anomalous’ nematic director orientation is also observed in a portion of elongated droplets where the axes of bipolar configurations do not coincide with the major axes of the droplet cavities due to the presence of inclusions at the cavity walls. The effect of alternation of droplet size and shape upon stretching and the influence of optical anisotropy of the polymer matrix on film transmittance are analysed. On the basis of the results obtained, simple criteria for optimization of main PDLC polarizer performance are formulated.