The present disclosure provides a stretchable display substrate and a manufacturing method. The stretchable display substrate includes: a base substrate, a plurality of opening patterns being distributed on the base substrate, a plurality of bridges being formed between adjacent ones of at least a part of opening patterns in the plurality of opening patterns to define islands; a plurality of display units, at least one display unit being arranged on each island; a plurality of wiring units each coupled between the display units on the islands and arranged on the bridge; and a thin film encapsulation layer including a first encapsulation portion covering a side of each display unit away from the base substrate and a second encapsulation portion at least covering a side of each display unit adjacent to the opening pattern. Each of at least a part of opening patterns has different opening sizes at a side of the base substrate adjacent to the display unit and a side of the base substrate away from the display unit, and the opening pattern has at least one step-like structure at a side adjacent to the island. According to the present disclosure, it is able to improve the reliability of a display element.