The increase in energy consumption in Bahrain is a significant issue. Insulation blocks are crucial for reducing heat transfer from outside to inside buildings. However, there’s limited research on the thermal performance of Bahrain’s insulation building blocks. No research to date has been conducted in Bahrain to study the effect of plaster and insulation inserts on the R-value of the blocks. This study examines and optimizes the thermal resistance (R-value) of an ‘Integrated Masonry System International, Ltd. (IMSI)’ block, chosen due to its common use in Bahrain’s commercial and residential construction. The study involves experimental analysis using a hot box setup and numerical analysis through the finite element method (FEM), along with assessing the impact of insulation inserts in the block’s cavities. R-values are calculated and validated for accuracy. The R-value discrepancy between numerical and experimental findings is 2.411%, and between numerical and manufacturer’s data is 5.743%. It is also observed that a 25 mm external plaster, as required by Bahrain’s government (EWA), enhances the R-value by 79.34%. Furthermore, optimizing the IMSI block’s height increased the R-value by 10.67%.