We have developed a numerical model for calculating stresses generated during cure of shrinking encapsulating resins. Mechanical modeling of polymer encapsulated electronic devices usually focusses on stress generated during cooling after cure. The stress developed during cure, due to shrinkage of the encapsulant, is normally neglected. That assumption is valid if both the shear and bulk moduli of the encapsulant at the cure temperature are negligible with respect to the moduli at lower temperatures. Our measurements on a model epoxy encapsulant show that the shear modulus during cure, varying from 0 to 6 MPa, is at least 100 times smaller than that at ambient temperature. In contrast, the bulk modulus at the cure temperature is only 2.5 times smaller. Since the bulk modulus during cure cannot be neglected, significant stress can be produced if volume shrinkage is constrained by a stiff mold or embedded elements. In fact, mechanical failure of encapsulating materials during cure has been evident in some of our experiments. Using measurements of shear and bulk moduli plus volume shrinkage as inputs to a finite element model, we have successfully predicted the shrinkage strains and stresses developed during cure of a model epoxy resin inside a cylindrical tube. Consideration of cure shrinkage stress has led to a process modification that appears to reduce mechanical failures in a real encapsulated device.