Abstract: An insulating cup sleeve with a non-woven polyester fabric panel, a thin polyethylene foam panel and a panel retaining loop portion. The fabric panel and the foam panel overlap each other. The fabric panel and the foam panel are wrapped into a circular configuration to form a sleeve. The fabric panel and the foam panel are sewn together by standard sewing means to form the sleeve. The loop portion is sewn in a vertical orientation to the outside of the sleeve. The sleeve is capable of being folded by a user allowing one end of the folded sleeve to be slipped into the loop portion. A preferred embodiment includes the sleeve can be washed by standard means and re-used.