Abstract: An apparatus for applying magnetic and cold therapy to an affected body part includes a stretch type flexible sheath capable of being secured about an injured portion of tissue, one or more packets provided in the interior of the sheath, such packets being flexible within cold temperature ranges, and one or more magnets provided in the gel packet itself, or interior or exterior of the sheath, either by insertion or sewing the magnet into the sheath. According to another embodiment of the invention, an apparatus for simultaneous applying magnetic and cold therapy to body parts features cold therapy gel packets and magnets that are separately insertable into pockets formed in a sheath for application to a body part. According to the method of the present invention, a magnetic field and cold compress are simultaneously applied to an injured body part. Additionally, the present invention discloses a gel packet for cold therapy enclosing permanent magnets for magnetic therapy.