In a heat exchanger, there is heat transferred either from the surrounding or to the surrounding, which is not expected. A thermal insulator is used to reduce this heat transfer. The effectiveness of a heat exchanger will increase if the heat loss to surrounding can be reduced. Theoretically, the thicker the insulator the smaller the heat loss in a plate heat exchanger. A research is carried on to study the effect of an insulator thickness on heat exchanger effectiveness. The insulators used are glasswool and rockwool. It turns out that the effectiveness is increasing until a maximum point, and then decreasing when the thickness of the insulator is increasing.