The invention is a method of protectively packaging one or more articles in a container utilizing a foam cushion as a protective medium for the article or articles within the container. The method comprises providing a foam cushion forming station wherein cushions are successively formed from plastic film material formed into bags which are moved vertically downwardly with a predetermined amount of a foamable composition deposited in the bags for thereafter substantially filling the bag as the composition foams. Open-topped containers with one or more articles present therein are successively moved in a predetermined pat of travel to and beneath the foam cushion forming station. A cushion from the foam cushion forming station is dropped into each container successively positioned therebeneath before the foamable composition in the cushion has completely formed, and with the leading lower end of each dropping cushion oriented to extend transversely of the path of travel of the container to facilitate laying the cushion over the article or articles present in the container. Finally, the containers are successively closed and sealed before the foamable composition forming the cushion in each container has completely formed.