This paper focuses on using the cure reference method (CRM), which was previously developed for the measurement of residual strains in composites, to determine the shrinkage that develops in cementitious materials. The experimental technique involves both the replication of diffraction grating on the cement paste specimen during the curing process and the use of high-sensitivity moiré interferometry. An automated fringe analysis system was developed and applied to obtain the full-field displacement and strain information on the surface of the specimen. Overall shrinkage as a function of time, location, and surrounding drying conditions was measured. Moreover, a method of combining CRM and the sealing of the entire specimen was used to investigate the contribution of chemical shrinkage. Chemical shrinkage as a function of water/cement (w/c) ratio, temperature, and time was explored. The experimental results demonstrate the same trends of shrinkage behaviour as documented in the literature. Furthermore, the ring test was performed to investigate shrinkage-induced cracks.