The optimal distribution of a limited amount of insulation material on a composite structure is obtained. Three cases for the variation of the composite wall thermal conductivity were considered. These are 1) power, 2) linear, and 3) exponential types of variation of wall thermal conductivity with an inplane direction along the surface of the wall. The surfaces of the wall are assumed to either have constant temperatures or be exposed to ambient at given temperatures. The variation of the optimum insulation thickness is shown to be relatively smooth and easily applicable for all three pro les of thermal conductivity. For a certain optimum length of composite structure, optimal distribution of the insulation material provides maximum percent energy savings. Optimal distribution of the insulation material may require partially covering the surface. Fig. 1 Composite wall with varying insulation thickness. Nomenclature a = k 1 L b = kt w/ k 0F = integrand of k = thermal conductivity, W/mK k i = thermal conductivity of insulation material, W/mK k 0 = thermal conductivity of composite wall at x = 0, W/mK k 1 = dimensional constant, 1/m L = length of the composite wall, m q = total heat transfer per unit width of the composite wall, W/m q = local heat ux, W/m 2 q = average heat ux, W/m 2 q min = average minimum heat ux, W/m 2 T = temperature, K T i = inner surface temperature of the composite wall, K T o = outer surface temperature of the composite wall, K t w = thickness of the composite wall, m x = spatial coordinate, m = insulation thickness, m = average insulation thickness, m opt = optimum insulation thickness, m = Lagrange multiplier = x/L = aggregate integral