The leakage‐prone disadvantage of pure phase change materials (PCMs) has hampered their practical application, and the encapsulation technology of PCMs has been favored for its ability to mitigate leakage. Combining large solar reserves with energy storage technology can increase the utilization of renewable energy and broaden the application of microencapsulated phase change materials (MEPCMs) in the field of solar energy. First, the fabrication technologies of MEPCMs, which include physical, chemical, and physical–chemical methods, have been comprehensively elaborated in this article. Second, the characteristics of different methods are also summarized. Then, the influences of MEPCMs properties on their thermal storage capacity have been clarified. This work shows the supercooling, phase separation, mechanical properties, encapsulation efficiency, and photothermal conversion performance of MEPCMs. Modification of MEPCMs by metal materials and their oxides, carbon, and semiconductor materials to improve the light absorption capacity. In addition, two‐dimensional materials such as MXene have been widely used to improve the photothermal properties of MEPCMs. Finally, the applications of MEPCMs in the construction, slurry, textile, and food industries are discussed. This work can provide some useful guidance for the optimization strategies of the photothermal conversion performance and practical applications of MEPCMs.