In a blown film extrusion system in which film is extruded as a tube from an annular die and then pulled along a predetermined path, an apparatus is provided for gauging and controlling the circumference of the extruded film tube. At least one transducer, preferably ultrasonic, is mounted adjacent the extruded film tube for transmitting and receiving interrogating pulses along paths normal to the extruded film tube, and for producing a current position signal corresponding to the circumference of the extruded film tube. The current position signal is continuously compared with at least one previous position signal, preferably with a computer program resident in a controller memory. If at least one preselected condition is violated, the current position signal is disregarded in favor of an estimated position signal. The quantity of air within the extruded film tube is varied in response to either the current position signal or the estimated position signal to maintain the extruded film tube at a preselected circumference.