The turbo blanket isolates the heat produced by your turbocharger, and prevents that heat from damaging, or even igniting, components surrounding the turbocharger within your engine compartment, such as plastic and rubber hoses and electrical wiring, as well as painted surfaces, such as the engine bay and the surface of the hood. Also, it prevents areas of localized high temperature from damaging the engine itself. For example, a common cause of head gasket failure in turbocharged vehicles is localized heating of a portion of the engine.
The heat differential between the portion of the engine near the turbocharger and the rest of the engine can cause warping of the head, and thus, head gasket failure. This has been a known cause of head gasket failure in both OEM and aftermarket turbocharged vehicles