In this study, a dual‐permeability approach is discussed for modeling preferential flow in shrinking soils by accounting for shrinking effects on macropore and matrix domain hydraulic properties. Conceptually, the soil is treated as a dual‐permeability bulk porous medium consisting of two dynamic interacting pore domains: (1) the fracture (from shrinkage) pore domain and (2) the aggregate (interparticles plus structural) or matrix pore domain. The model assumes that the swell‐shrink dynamics is represented by the inversely proportional volume changes of the fracture and matrix domains, while the overall porosity of the total soil, and hence the layer thickness, remains constant. This assumption can be justified for soils with dominant horizontal soil deformation in the swelling‐shrinkage process (shrinkage geometry factor,rs> 3). The swell‐shrink dynamics was included in a one‐dimensional dual‐permeability model in which water flow in both domains was described with the Richards' equation. Swell‐shrink dynamics was incorporated in the model partly by changing the coupled domain‐specific hydraulic properties according to the shrinkage characteristics of the matrix and partly by allowing the fractional contribution of the two domains to change with the pressure head. As a first step, the hysteresis in the swell‐shrink dynamics was not included. We also assumed that the aggregate behavior and its hydraulic properties depend only on the average aggregate water content and not on its internal real distribution. The model proved, describing successfully effects of shrinkage on the spatial and temporal evolution of water contents measured in a silty loam soil in the field.