Given the prediction of global warming, there is a growing concern about overheating in the severe cold and cold regions of China. In the past decades, indoor thermal comfort has been neglected in building practice, while efficiency-oriented improvements have been developed, such as increased insulation of building envelope. An extensive literature review shows contradictory conclusions about whether increased insulation can alleviate overheating. The aim of this research is to conduct simulations based on measured data to reveal the influence of insulation on overheating in dwellings in these regions of China. An unoccupied residential flat was monitored to determine the extent of overheating while eliminating the effects of other contributors, such as natural ventilation. Validated building performance simulations were carried out with altered insulation layer thickness in Integrated Environmental Solutions-Virtual Environment IESVE software to examine its influence on overheating during summertime in five representative cities. The results showed clear evidence of summer overheating in these regions. In Yichun, Harbin, Shenyang, Dalian and Beijing, walls with increased insulation were found to exacerbate overheating in the bedrooms without natural ventilation by 22.5%, 16.6%, 20.3%, 11.8% and 6.9%, respectively, compared to the uninsulated walls. This study provides useful information for building regulations on energy efficiency and thermal comfort.