The present invention provides a portable food and beverage cooler in combination with an audio system, preferably a stereo an AM/FM radio receiver mounted in a recessed cavity on a wall of the cooler. The cooler has an outer shell, a recessed cavity having a sleeve extending around the edge of the cavity, an intermediate insulation layer, an inner shell, a partially removable top with handle for carrying the cooler with and an inner compartment enclosed by four adjoining walls for holding food and beverages. The audio receiver includes a plurality of components including the AM/FM receiver, or optionally an AM/FM cassette deck or Compact Disc player unit, one or more speakers, a power source battery, receptacle for a jack for earphones, separately mounted in a recessed compartment provided in one or more of the cooler walls , connected by a wiring circuit. Protective screens and waterproof sealing means are provided for keeping sand and moisture out of the speakers to improve quality of sound. Insulation of cooler also insulate stereo system components from sand, heat and moisture.