The use of latent heat storage, microencapsulated phase change materials (MEPCMs), is one of the most efficient ways of storing thermal energy and it has received a growing attention in the past decade. However, there is no complete overview of its utilisation in thermal energy storage systems, and the information is widely spread in the literature. In this paper, a comprehensive review has been carried out for MEPCMs. Four aspects have been the focus of this review: fabrication and characterization of MEPCMs, applications of MEPCMs to the textile and building, fundamental properties of microencapsulated phase change material slurry (MPCS) and application of MPCS to the thermal energy storage system. Over 140 recent publications are referenced in this paper.