A system simultaneously applies compression and cooling to a body part. An ice bag has a removable cap for inserting ice and removing water. An air release valve in the cap allows release of air from the ice bag without removing or loosening the cap. A compression wrap is a unitary sheet of elastic material having a central body with straps extending therefrom. A hole in the central body receives the neck of the ice bag, which is positioned over the body part. The unitary body and straps of the sheet apply pressure via the ice bag. Air released into the ice bag from melting ice is removed via the air release valve without disturbing the compression wrap or the cap. The compression wrap contracts to compensate for the volume of the released air, thus maintaining continuous pressure on and thermal contact with the body part.
