Outer surfaces of KSR-III are insulated to protect outer structure and inner payloads from the aerodynamic heating. The characteristics of insulation material (BMS 10-102), selected through careful tests and thermal analyses, are low heat transfer rate and low density. It is applied in a wet and continuous spray pattern for outer surfaces of KSR-III. In the present study, the honeycomb sandwich structure of nose fairing, which is one of the typical multi-layer structures of KSR-III, is thermally analyzed with insulation.