Rheological and film forming properties of fish gelatin modified by transglutaminase (TGase) were investigated. The results indicated that the modified gels had higher gel strength of 101.4 g and 118.6 g with added TGase of 1% and 2 %, respectively. Elastic modulus (G'), viscous modulus (G'') of modified gels were significantly increased by the addition of 2% TGase. Tensile strength (TS) and elongation at break (EAB) of modified film increased by 38.2% and 137.1%, respectively, compared with the control film (P<0.05). The use of TGase significantly decreased water vapor permeability (WVP) of resulting film. Fourier transform infrared spectra (FTIR), X-ray diffraction (XRD) and microstructure analysis denoted a certain degree of interference of TGase in the arrangement of gelatin molecules.