Abstract: In an insulation blanket-packaging machine and method for continuously packaging insulation blanket in the form of batts there is a continuous: infeed of batts into a loading station; movement of batts from the loading station into a transfer station that also functions as a batt-stacking station; formation of a batt stack in the transfer station; compression of a batt stack in a compression station; envelopment of a compressed batt stack within sheet material in a packaging station to form a package; and removal of a package from the machine. The machine can also be used to package insulation blanket in roll form.