A 2-in-1 handbag with an adjustable compartment system for providing a foundation handbag, an insulated secondary inner handbag with an adjustable compartment system to create separate compartments for storage and organization of items such as wallet, cosmetics, baby items, clothing, shoes, toiletry and/or food within the handbag system. The 2-in-1 handbag with an adjustable compartment system generally includes a foundation handbag, insulated secondary inner handbag with an adjustable compartment system.