Heterogeneous deformation in the form of dilatational bands is observed under certain biaxial stress states that closely resembles uniaxial necking in LLDPE blown films. The formation and orientation of dilatational bands is a function of film morphology and stress state. The dilatational bands form, with their lengths aligned with the machine direction (MD) of the film, under equibiaxial stress states and nonequibiaxial stress states when the higher principle stress is coincident with the transverse direction (TD). However, homogeneous deformation is observed if the higher principle stress is coincident with the MD. Similarly, uniaxial specimens show necking when the stress is applied in the TD and affine deformation when the stress is applied in the MD. Neck boundary propagation under uniaxial loading is due primarily to the consumption of undrawn material, while dilatational band boundary propagation under an equibiaxial loading also includes simultaneous continued deformation of the drawn material.