AbstractDilution of an artificial diet with water or cellulose to nutrient levels of 32% (undiluted), 19% and 10% fresh weight (fw) resulted in increased fw and dry weight (dw) food consumption (both absolute amounts and weight‐relative rates) by velvetbean caterpillars,Anticarsia gemmatalisHübner. Despite these increases, the absolute amount and relative rate of nutrient intake by the caterpillars declined with dilution, as did their dw gain and dw (% fw) and lipid (% dw) contents. The proportion of consumed food (dw, including cellulose) that was digested and absorbed declined with increased dietary cellulose; however, the proportion of consumed nutrients (dw, excluding cellulose) that was digested and absorbed was not affected by the presence of cellulose, although it increased slightly (but significantly) with dietary water. The efficiency with which the absorbed nutrients were converted to biomass energy showed a negative relationship with the various measures of food consumption and thus a positive relationship with dietary nutrient level.The compensatory increases in feeding mitigated the deleterious impact of dietary dilution on growth, which would have declined further without the increased feeding. These data suggest that food consumption is regulated primarily through an evaluation of food nutrient level, and that the metabolic costs associated with the increased consumption and processing of food may be substantial, especially on the most diluted diets. Another hypothesized cost of increased feeding, reduced efficiency of digestion and absorption as food presumably passes more rapidly through the gut, was not detect