Buckle initiation and delamination of patterned ITO layers on a polymer substrate were studied. Various buckle modes have been observed depending on the type of etch defects and the crack patterns. The buckle density was found to be dependent on the number of etch defects, imperfections, applied uniaxial compressive strain and the loading time. Buckles originating from a specimen edge and from interior approaching the edge showed different type of behavior. Edge defects resulting from the specimen cutting were found to serve as a point of initiation of layer buckling. They also influence the propagating buckle from the interior of the specimen when it approaches the specimen edge. A propagating buckle front is arrested at an edge defect close to the specimen edge due to a reduction in the residual strains distribution in the vicinity of the edge defects.