Steel members in wall construction form a thermal bridge that interrupts the insulation layer of a wall. This causes higher rate of heat transfer by conduction through the wall framing than through other parts of the wall. One method to reduce the thermal bridging effect is to provide a break, such as insulating sheathing. A thermally efficient slit-web and stud was developed in this program to mitigate the conductivity of steel. The thermal performance of the slit-web stud was evaluated at Oak Ridge National Laboratory using hotbox testing. The thermal test results showed that the prototype slit-web stud performed 17% better than the solid-web stud, using R-13 fiber glass batts with exterior OSB sheathing and interior drywall. The structural behavior of this slit-web stud was evaluated in axial, bending, shear, shear wall, and stub-column tests. Test results indicated that the slit-web stud performed similarly or better than the solid-web stud in most structural performance characteristics investigated. Thus, the prototype slit-web stud has been shown to be thermally efficient, economically viable, structurally sound, easily manufactured and usable in a range of residential installations.