A multi-compartment flexible pouch with an insulated compartment and method of forming includes a pouch body formed from a panel of material, and the pouch body has at least one compartment for a product. An opening means for accessing the product is disposed in the pouch body. A first insulating compartment seal having a predetermined shape is applied to the pouch body and a second insulating compartment seal having a predetermined shape is applied to the pouch body and spaced a predetermined distance apart from the first seal to form the insulated compartment. The insulated compartment contains a pressurized gas and a surface temperature of the insulated compartment is less than a surface temperature of the product compartment after the pouch is heated.