Flat compression and vertical compression tests of dry expanded PVOH, scanning electron microscopy (SEM) inspections, and static compression tests of expanded PVOH after fully absorbing water were carried out. The results showed that the cushioning performances of expanded PVOH differ slightly in different directions; its vertical compression characteristics are better than flat compression characteristics; dry expanded PVOH basically loses its resilience after being compressed; the walls of pores of expanded PVOH are bent after compression; the pores shrink and turn much more dense; its compressive stress-strain curve includes linear elastic zone, plateau zone and dense zone; compression performance of fully-water-absorbed expanded PVOH weaken significantly and its resilience improves. Therefore, expanded PVOH is suitable for cushioning package of environmental-harmful liquid medicine or dangerous goods. In case of leakage from inner package, expanded PVOH can absorb the liquid quickly, prevent package from liquid leakage and shows cushioning effect.