The application of thermal insulation technique for buildings in hot arid region still under development and requires investigation for many aspects, especially those related to the individual elements of the construction. The present study investigates the impact of efficient insulation on the thermal performance of the following construction elements: wall, roof and foundation. The techniques used for the insulation have followed the Passive House criteria. The study introduces many benefits for passive design of the building in extreme hot climate. The work has done experimentally in Kirkuk, Iraq for two building models; one is efficiently insulated and the other is traditional. The data, which are collected in summer time, show reduction in indoor temperature of the efficient model by 8 °C in average comparing to that of traditional one. Measurements show stability in the internal wall temperatures for efficient model with an average temperature of 33 °C comparing to 42 °C for traditional one. Similarly, the insulated roof radiates less heat into the indoor than that of traditional model. Furthermore, the effect of both efficient insulated roof and canopy shading reduces the temperature of internal surface temperature of the roof by 12 °C comparing to the traditional model. A local simulation program based on ASHRAE relations has shown an energy saving in the cooling load up to 70%.