An insulated egg incubator having a base pan with a bottom into which eggs are placed for incubation until hatching. Water channels are evenly disbursed in the bottom of the base pan for adding water and humidity to the incubator. A plastic molded screen is located in the base pan above the water channels to support the eggs. A top lid of a smaller dimension than the base pan is provided for completely nesting upside down into the base pan for shipping of the incubator. A window is in the top lid for viewing within the incubator. An insulated heater with a plastic fan assembly is mounted to the inside of the top lid. A digital control unit is mounted in the top lid with a rectifier connected to and controlling the on-off modes of the heater and the fan. A thermistor is provided inside the top lid and connected to the control unit placeable on the eggs for displaying the temperature within the incubator at the top of the eggs and inputting temperature readings to the control unit for operation of the heater. A humidity sensor is located inside the top lid and connected to the control unit for displaying the humidity within the incubator. A power cord with a plug is provided for connection and supply of electrical power to the control unit.