An improved non‐random free‐volume theory of polymer solutions is presented. It is based on Flory's Equation‐of‐State theory which is modified to account for differences in the size of core volumes of segments in pure liquids and in solution. In addition, it is corrected for non‐randomness through Guggenheim's Quasi‐Chemical approach. The theory is tested against experimental results on heats of mixing, volumes of mixing, and χ interaction parameters of poly (dimethyl siloxane), polyisobutylene and natural rubber solutions with gratifying results. Relations with existing similar theories are discussed.