The effect of shear stress on the foaming process has been studied using the Foaming Process Simulator developed previously. The polymer samples were saturated with gas in the test chamber. A rotor was used to apply shear stress to the polymer samples. Foams were obtained by releasing the pressure quickly. Polystyrene, filled and unfilled, was used as the material. The cell density was analyzed with a scanning electron microscope. It was found that the cell density was significantly increased by introducing shear stress. The higher the shear stress, the more significant the effect. A cell stretch model has been developed to explain the cell nucleation enhancement with shear stress. The nucleation sites are stretched under the shear stress. The stretched nuclei are much easier to expand for cell formation owing to their larger surface areas and non-spherical shapes. The model prediction shows the same tendency of the effect of shear stress observed in the experiment. The key issue with shear stress nucleation is the transformation of mechanical shear energy into surface energy.