Flexible thermal insulation materials have garnered significant attention owing to the proliferation of flexible electronic devices and their diverse application environments. Plant-derived thermoplastic polyester elastomer (TPEE) foams emerge as promising candidates in the field of flexible thermal insulation. However, inevitable shrinkage behavior of TPEE foams would result in reduced porosity and inferior thermal insulation performance. Hence, a pioneering approach is proposed wherein cellulose nanofibers (CNF) are integrated into TPEE matrixes, complemented by microcellular foaming, aimed at mitigating shrinkage process and enhancing thermal insulation properties. In this work, the relaxation behavior of nanocomposite, corresponding to shrinkage process, has been elucidated through dynamic mechanical analysis. It's found that entanglement of CNF could heighten the internal friction with TPEE molecular chains, coupled with establishment of hydrogen bonds, thereby curbing relaxation phenomena and facilitating the attainment of foams with enhanced and stable porosity. The shrinkage ratio of TPEE/CNF composite foam could be reduced by 20 % without compromising the final porosity. The thermal conductivity would decrease to 37.9 mW/m·K for the TPEE/CNF composite foam with the higher porosity of 0.947. Moreover, the utilization of CNF presents a novel avenue for fabricating TPEE/CNF nanocomposite foams endowed with flexibility, lightweightness, increased porosity, and reduced thermal conductivity.