Since the nineteenth century, a systematic study of heat storage systems through latent heat using phase‐change materials (
PCM
s) has been carried out. This article contains the most important and useful information about PCMs, system design and its applications, and advances that
PCMs
have undertaken today. The information related to the classification of
PCM
s and what properties must have a material to be considered as a
PCM
are presented. Owing to the loss by evaporation and to prevent leakage of
PCM
s, it is necessary to encapsulate it; therefore, a review of the methods of encapsulation is done, emphasizing microencapsulation: chemical, physicochemical and physicomechanical processes, and shape‐stabilized methods.
PCM
storage systems can be applied to use of latent heat for thermal protection or inertia or to store a big amount of energy in a small temperature range. In this article, depending on the application and the energy and power needs of
PCM
storage systems, the requirements, design, and methodologies are reviewed. Many applications of
PCMs
can be found. In this work, a detailed review of various applications such as electronic devices, food and medicine protection, clothing, buildings, and
PCM
s in concentrated solar power plants and in greenhouses is presented. In addition, implementation of latent heat energy storage in waste heat recovery systems and transportation of energy are mentioned. Few papers with economic evaluation of systems integrating
PCM
s are reviewed.