A method of manufacturing a patterned retarder includes forming a retarder material layer by applying a retarder material to a substrate; drying the retarder material layer at a first temperature; exposing the retarder material layer to linearly-polarized UV, wherein the retarder material layer has an optical anisotropic property; and heat treating the retarder material layer at a second temperature higher than the first temperature to increase the optical anisotropic property of the retarder material layer.