This paper aims to evaluate the damage degree and actual effect of the exterior wall insulation system. For this purpose, the author decided to investigate a typical building with severe damages on the exterior wall insulation system. Then, the variation in temperature and humidity of the wall was measured by embedded sensors, and compared with the results obtained through theoretical analysis. Coupled with thermal image, the contrastive results help to clarify the causes and solutions to defects like exfoliation and leakage. This research provides new insights on the construction, application and repair of energy-saving walls.