I would still do a block off even on an internal chimney, I just wouldn't worry as much about insulating the firebox, but I still believe that insulating the firebox helps keep the heat where it needs to be in either an exterior or interior fireplace.
At a minimum pulling the surround and stuffing the damper throat with Roxul will be better than doing nothing.
At a minimum pulling the surround and stuffing the damper throat with Roxul will be better than doing nothing.

![[Hearth.com] Finally got around to insulating my fireplace [Hearth.com] Finally got around to insulating my fireplace](https://www.hearth.com/talk/data/attachments/192/192078-d008b463a8389ebd365ae2e859480317.jpg?hash=yQLiqAmqnF)
![[Hearth.com] Finally got around to insulating my fireplace [Hearth.com] Finally got around to insulating my fireplace](https://www.hearth.com/talk/data/attachments/192/192079-b10525fdec34cff64a2ea50879ff5d13.jpg?hash=uKtM8C622G)