Abstract: Vacuum-shrinkable luggage is disclosed for compactly enclosing and transporting at least one item enclosed therein, and a method of assembling same. The luggage compresses the at least one item enclosed therein such that the size of the luggage decreases. The luggage defines a compartment therein for containing the item. Collapsible panels forming walls of the luggage are made from a material that prevents air seepage through the panels. Seals are provided to prevent air seepage around edges of the panels. A vacuum source in air communication with the compartment establishes low air pressure within the compartment. The vacuum source causes the walls of the luggage to shrink and/or move inwardly so as to compress or compact the item, also reducing the size of the luggage.