The effect of lithium iodide (LiI) on the mechanical strength, properties, and molecular orientation of poly(vinyl alcohol) (PVA) fibers spun by wet spinning and then heat-stretched was studied. The stretchability of LiI-PVA fibers was improved, and the rupture during stretching was suppressed compared to PVA fibers. In addition, the tensile strength and elastic modulus of the thermally stretched fibers have been significantly improved. It was also found that the addition of LiI improves the molecular orientation of PVA. This was achieved because LiI reduced the hydrogen bonds between the molecular chains of PVA, resulting in reduced crystallinity. Most of the LiI in the fiber could be removed by a coagulation bath and washing during the spinning process. This means that LiI is eventually removed, and the heat-treatment strengthens the hydrogen bonds, resulting in excellent mechanical strength.