A method of manufacturing a display apparatus includes preparing a substrate including a display area and a pad area outside of the display area, forming a sacrificial layer in the pad area, forming an encapsulation layer over the display area and the pad area, forming cracks in at least a portion of the encapsulation layer by increasing a volume of the sacrificial layer or by gasifying or evaporating at least a portion of the sacrificial layer, and removing at least a portion of the encapsulation layer in the pad area. A display apparatus is manufactured according to the manufacturing method.