A cylindrical rechargeable battery having an insulating gasket prevents an internal short circuit between a cylindrical can and a cap assembly generated by external factors. The cylindrical rechargeable battery includes an electrode assembly; a cylindrical can which has one open side and receives the electrode assembly through the open side, and is electrically connected to the received electrode assembly; and an insulating gasket which is connected to the inner surface of the open side of the cylindrical can and includes a bent cover part; and a cap assembly which seals the open side of the cylindrical can and is electrically insulated from the cylindrical can by the insulating gasket, and is electrically connected to the electrode assembly. The cover part covers an outer surface of the open side of the cylindrical can.