Shrinkage of urea-based foam insulation has been one of the most quoted and least understood properties of this product. Shrinkage appears to be a very simple property to measure, but because of the irregularity and non-uniformity of the shrinkage, it is most difficult to measure it accurately.Methods of measuring shrinkage can lead to new definitions, as maximum, approximate, and average shrinkage. This paper will present field data of shrinkage measurements which will fall under each of these definitions. Comparisons will be made with actual field measurements and carefully measured controlled shrinkage panels. The irregularities of the gap space, and the anticipated error caused by the limited accuracy of the measuring system are also presented.Shrinkage is caused by a number of different effects, starting with the formulation of chemicals and ending with a rate of curing of the final foam.One of the most profound claims has been the derating of the thermal insulating value caused by the various assumed percentages of shrinkage. The models of these studies are discussed and the results of a comprehensive computer study are presented which show the effective shrinkage to be much less than prior reported claims. A new term -quality factor, must be added to any mathematical model, and this factor can reduce the percentage of derating to an insignificant value, as shown in this paper.