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Variable-speed limit sign (VSLS) systems enable transportation managers to dynamically change the posted speed limit in response to prevailing traffic and/or weather conditions. Although VSLSs have been implemented in a limited number of jurisdictions throughout the world, there is currently very limited documentation that describes quantitative safety and operational impacts. Furthermore, the impacts reported are primarily from systems in Europe and may not be directly transferable to other jurisdictions such as North America. This paper presents the results of an evaluation of a candidate VSLS system for an urban freeway in Toronto, ON, Canada. The evaluation was conducted using a microscopic simulation model combined with a categorical crash potential model for estimating safety impacts.