Abstract The polarizatison conversion and the Goos–Hänchen (GH) shifts of the reflected electromagnetic wave for the multilayered structure made of topological insulator (TI) layers with finite surface energy gap are investigated. The transfer matrix formalism is adopted to analyze the reflection of electromagnetic wave through the multilayered structure, and the influences of surface energy gap, thickness and number of the TI layers are discussed. We find that maximum polarization conversion rate can be obtained with appropriate surface energy gap of TI, and within a certain range of finite energy gap, the polarization conversion effect is stronger than that for the case under the infinite surface energy gap limit. Greater polarization conversion rate for TI with small surface energy gap can be found than that for TI with larger energy gap in some range of layer numbers. At large incident angles the GH shifts vary considerably with the layer number for TI with relatively larger energy gap. Result of the combined influence of surface energy gap and layer number shows that, there exists both the positive and negative enhancement peaks of the GH shifts, and for smaller energy gap, fewer TI layers are required to obtain the transition between positive and negative GH shifts.