Thermally treated and ground poplar bark was used as the raw material for pressed bark insulation panels. Bark chips were treated for one, two, and three hours at 180 °C after a slow warming, drying process. The physical and mechanical properties of the pressed panels were investigated and compared to each other and to the control panel made of untreated bark chips. Thermal conductivity showed slight deviations and ranged from 0.064 – 0.067 W·m−1·K−1. The MOR and MOE showed a significant increase of 100%. The internal bond increased by 27% while the water absorption and thickness swelling decreased by 53.8% and 69.1% respectively. Panel density did not change significantly because the target density was the same for every panel type. The mechanical and physical properties of thermal insulation panels made of heat-treated chips increased significantly.