  We report the detection of flaring events in NGC 4395 ULX1, a nearby
ultraluminous X-ray source (ULX), for the first time, using recent XMM-NEWTON
observations. The flaring episodes are spectrally harder than the steady
emission intervals, resulting in higher fractional variability in the high
energy regime. A thin Keplerian and a slim accretion disk provide the best-fit
continuum for XMM-NEWTON spectra. All observations show a broad hump-like
feature around $\sim 0.9$ keV, which can be associated with a collection of
blended emission lines, and suggests the presence of a wind/outflow in this ULX
through comparison with other ULXs that show a similar feature. The flaring
spectra correspond to higher slim disk temperatures due to higher mass
accretion rate under an advection-dominated accretion scenario. The
luminosity-temperature (L-T) values in different flux states show a positive
trend. When characterized with a powerlaw relation, the L-T profile is broadly
consistent with both $L\propto T^2$ and $L\propto T^4$ relations for the
analysed data. The empirical predictions for a slim accretion disk in the case
of super-Eddington accretion onto a stellar-mass compact object is $L \propto
T^2$ which is a possible scenario in ULX1. The origin of the flaring events is
understood as an intrinsic change of accretion rate or presence of variable
clumpy wind in the inner region of the accretion disk.
