A method of forming a polymer dispersion type liquid crystal display element having a polymer dispersion type liquid crystal sandwiched between a pair of substrates, each having an inside electrode, is disclosed. The droplets either are dispersed and held in a continuous matrix phase of the polymer or held in a three dimensional network of a matrix containing the polymer. In the method, the value of (V90×R/d is at least 0.7 where V90 is that voltage required for transmittance of a voltage-transmittance characteristic of the display element to be 90% when the element is at 30° C., d is the interval between the substrate pair, and R is the average particle size of the liquid crystal droplets. In the method, a liquid crystal polymer precursor compatible solution containing a liquid crystal and a polymer precursor placed between the substrate pair is held at a temperature greater than the thermal phase separation temperature of the precursor solution, which is irradiated with ultraviolet to permit phase separation of the liquid crystal and the polymer precursor.