Polymer dispersed liquid crystal (PDLC) materials based on poly(polyethyleneglycol methacrylate) are prepared by ultraviolet light induced polymerization. Microphase structure of PDLC films is observed by scanning electron microscopy. It reveals that reversed morphology type PDLC is obtained. The liquid crystal (LC) is a continuous phase and fills up the irregular space of the polymer network. A comprehensive investigation is performed on the electro‐optical properties of PDLC films. The light scattering and transmittance properties of PDLC films are studied. The effects of LC domain size, light wavelength, applied voltage, frequency, temperature, incident angle, and film thickness on electro‐optical properties of PDLC films are discussed. The results show that size and shape of LC domain seriously affect the electro‐optical properties of PDLC film. ©1996 American Institute of Physics.