A method of insulating a substrate from repeated thermal transients and/or thermal impulses applied thereto by proximately absorbing and storing the thermal transients and/or thermal impulses for subsequent removal by radiation. According to the method, a coating is placed in energy absorbing contacting relation with the substrate. The coating includes a base material and a plurality of microcapsules dispersed within the base material. The microcapsules may be dispersed throughout the base material and may be submerged therein so that they are substantially spaced apart from one another. The microcapsules contain a thermal energy absorbing material, for example, a phase change material such a paraffinic hydrocarbons or alternatively, plastic crystals. Articles of manufacture may be produced according to the present invention which employ the above described coating.