Dynamic insulation, a form of ＇Breathing Wall＇ construction which allows the movement of air and moisture through the external walls of a building, was seen as one possible method for reducing building envelope heat losses and achieving high indoor air quality. A research investigation was conducted to provide a firm scientific understanding of dynamic insulation. An important outcome of the work will be the development of building envelope designs which effectively and economically employ dynamic insulation in cold climates. This paper presents some general conclusions, confirming that the energy saving produced by dynamic insulation alone is small relative to that obtained in conjunction with conventional air heat recovery methods.