In one aspect the present subject matter is directed to a system for thermally isolating a turbine shroud of a turbine shroud assembly. The system includes a shroud support having an inner surface and a turbine shroud that is connected to the shroud support. The turbine shroud includes a hot side surface that is radially spaced from a back side surface. At least a portion of the back side surface is oriented towards the inner surface of the shroud support. The system further includes a coating that is disposed along the back side surface of the turbine shroud. The coating regulates heat transfer from the turbine shroud to the shroud support or other hardware that may surround or be adjacent to the turbine shroud.