An internally insulated rigid exhaust system conduit and method for making the same are provided. The conduit includes an outer rigid tube, a generally flexible inner portion positioned within the outer tube and an insulation layer positioned therebetween. The conduit may include one or more bends or curves. Due to the flexibility of the inner portion and insulation, a gap defined between the inner portion and outer tube may be generally uniform in width even after the bending of the outer tube. During the manufacturing process, the inner portion is wrapped with a blanket or sleeve of insulation material to form a wrapped subassembly and then inserted into the outer tube. The insertion of the wrapped subassembly may occur either before or after a bending of the outer tube. The insulation may also be blown into the gap defined between the inner portion and outer tube.