A cup holder for a conventional beverage cup that has a generally inverted frusto-conical side wail and an upper access opening surrounded by a radially outwardly extending peripheral bead adapted to be connected to a disposable lid by a snap fit within a downwardly and radially outwardly depending peripheral skirt on the lid. The insulated cup holder includes a double walled insulating vessel including an inner liner and an outer liner spaced therefrom to define an insulating space and snugly receives a conventional cup so as to insulate the contents of the cup to assist in maintaining its temperature at a desired level.