An insulated cooler with a submersible internal circulating pump is provided. The insulated cooler includes a base, a plurality of sidewalls extending upwardly therefrom, and an open upper end defining an interior volume. The insulated cooler further includes a lid that is removably secured over the open upper end, wherein the lid includes multiple recessed cup holders with sidewalls that extend downwardly into the interior volume of the insulated cooler. The insulated cooler includes a submersible internal circulating pump operably connected to a system of copper tubing that winds around the sidewall of the recessed cup holders. When activated, the submersible internal circulating pump transports melted ice water through the tubing, which cools the sidewall of the recessed cup holders. In this way, the insulated cooler can cool objects within the interior volume and can cool beverages that are supported within the exterior cup holders.