The work aims to improve the stability of thermal shrinkage packaging machine in mechanical energy saving control and optimize the control performance of the controller more efficiently. On the basis of fully studying the ARM Cortex-M3 core controller LPC1500, the hardware of the mechanical energy saving controller of the thermal shrinkage packaging machine was developed with embedded environment, including A/D acquisition module, information acquisition module and drive execution module, etc. In combination with the advantages of fuzzy Smith in feedback regulation, the energy saving control performance was improved, and then the mathematical model of the constraint parameters of the controller for the mechanical energy saving control was established to conduct in-depth research on mechanical energy saving. The experimental test results showed that, the performance of the predictor designed by fuzzy Smith was better, the energy saving control reliability of the thermal shrinkage packaging machine was high, and the energy consumption of the packaging machine could be reduced. The strategy adopted in the control of thermal shrinkage packaging machine has the advantages of optimizing the energy saving effect and has a broad market application prospect.