Abstract.1Leaf folding is a common behaviour among caterpillars that has many potential benefits such as creation of a favourable microclimate and protection from predation or dislodgment.2One cost of leaf folding which has not previously been quantified is the reduction in growth rate that might result from the energetic expenditures of producing silk and applying it to fold leaves.3On caged goldenrods in field and forest habitats, early‐instarDichomeris leuconotella(Busck) caterpillars that were repeatedly forced to spin new leaf refuges (either folds or webs of silk) actually had higher growth rates than caterpillars left undisturbed.4This surprising result apparently reflected the fact that disturbed caterpillars chose relatively young green leaves for new refuges, whereas undisturbed caterpillars tended to remain in their webs or folds on ageing leaves.5In a glasshouse experiment using plants that underwent little senescence, growth rates were unaffected by the amout of refuge‐making effort, indicating that the costs of such effort were either negligible or easily compensated for by these caterpillars.6On glasshouse plants, caterpillars periodically forced to change refuges had higher disappearance rates than those left undisturbed, despite the absence of predators. Wandering or falling from plants is evidently a major hazard of frequent refuge changes.7Thus, early‐instarDichomeriscaterpillars face a trade‐off in which risks of predation or loss of contact with the host favour the observed low rate of refuge changes, but in which growth rates could actually be improved with more refuge