The transparent heat shrinkable polyethylene film is prepared with the mixture comprising metallocene LDPE, linear LDPE, LDPE and assistant, and through compounding material, mixing, extruding with a single-screw extruder and blow molding at 160-200 deg.c. The product of the present invention has high transparency, and may be used in printing bright pattern and packing with stable stacking and is suitable for mechanical production. The product of the present invention may be used in packing various products, such as farm product, domestic article, cosmetic, detergent, food, medicine, beverage, etc.