ABSTRACTWith the increased use of carbon fiber reinforced composites (CFRC), the demand for the integration of insulated conductive wire/yarns in CFRC is increasing for additional function integrations such as sensoric, actoric, signal transfer, heating, etc. Between thermoset and thermoplastic matrix composites, the integration of insulated conductive materials is comparatively difficult due to the requirements of higher temperature and pressure during the consolidation of thermoplastic composites. Therefore, the need for insulating material able to withstand higher temperature for the use in thermoplastic CFRC is also high. Using DREF friction spinning technique, it is possible to manufacture yarns with a core‐sheath structure in which, as the core conductive wire/yarns and as the sheath different fiber formed materials can be used for the insulation of the core. In this study, the aspects of using different short/staple fibers such as polyester, Glass and Kynol as the sheath and the usable temperature range are revealed. Furthermore, the insulation property of such fibers after the application of different temperatures has been reported. © 2013 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 130: 1179‐1184, 2013