One of the dominant factors which determine the life of refractory linings in large induction furnaces is the breakdown of the lining caused by various mechanical stresses caused by thermal expansion and contraction. While smaller induction furnace linings are inherently less prone to these issues due to the corresponding reduced scale, larger furnaces (300kg capacity and higher) will see a greater propensity for failure due to these compounding stresses. While improvements in the refractory materials to handle thermal shock are of course beneficial, the actual structure of the refractory lining can also have a great impact on how these stresses are handled. In this paper, furnace structures consisting of monolithic rammed, mortared brick, one piece, and segmented brick construction are all compared and analyzed using Finite Element Analysis techniques to determine where and why stresses are formed, and how they can be minimized. Analysis is provided of various furnace lining systems, including a segmented design which avoids putting individual components into uneven tension, while providing un mortared engineered expansion gaps to provide room for thermal growth. In addition the incorporation of tensioned hold down system into the furnace structure is reviewed which provides a system to allow the refractory to expand and contract without the creation of large cumulative stresses.