In this studing, application of the digital image correlation method (DIC) for determining the coefficient of thermal expansion (CTE) of Indium Tin Oxide/Polyethylene Terephthalate(ITO/PET) thin film/flexible substrate was proposed and the effects of thinkness variations of ITO and PET, respectively, on the CTE of the specimens was disscussed. The observation range of experimental temperature was chosen from room temperature to the glass transfer temperature of PET, 70¢J. A novel DIC experimental process for reducing the errors caused from the variations of the refractive index of the surrounding heated air was proposed. As a result, the experimental error of CTE measurement was reduced form 10~17% to less than 5%. The experimental results showed that the CTE of ITO/PET specimen is anisotropic. Futhermore, the CTE of an ITO/PET specimen will be increased by decreasing the thinkness of PET flexible substrate, and increased by increasing the thinkness of ITO film - which means decreasing the surface resistance of ITO film.