Drying shrinkage of concrete occurs due to the loss of moisture and thus, it is controlled by moisture diffusion process. On the other hand, the shrinkage causes cracking of concrete and affects its moisture diffusion properties. Therefore, moisture diffusion and drying shrinkage are two coupled processes and their interactive effect is important for the durability of concrete structures. In this paper, the two material parameters in the moisture diffusion equation, i.e., the moisture capacity and humidity diffusivity, are modified by two different methods to include the effect of drying shrinkage on the moisture diffusion. The effect of drying shrinkage on the humidity diffusivity is introduced by the scalar damage parameter. The effect of drying shrinkage on the moisture capacity is evaluated by an analytical model based on non-equilibrium thermodynamics and minimum potential energy principle for a two-phase composite. The mechanical part of drying shrinkage is modeled as an elastoplastic damage problem. The coupled problem of moisture diffusion and drying shrinkage is solved using a finite element method. The present model can predict that the drying shrinkage accelerates the moisture diffusion in concrete, and in turn, the accelerated drying process increases the shrinkage strain. The coupling effects are demonstrated by a numerical example.