A method of manufacturing flexible substrate is provided, the method comprising following steps: pasting a heat dissipation sheet on a carrier substrate; preparing a thermal insulating layer on the heat dissipation sheet; preparing a flexible substrate layer on the thermal insulating layer; preparing a display element on the flexible substrate layer; and separating the carrier substrate and the heat dissipation sheet and obtaining a flexible substrate. The method of manufacturing flexible substrate and the flexible substrate are provided by this invention, which could reduce thickness of flexible substrate and enhances curving property.