Phase Changing Materials (PCM) are innovative solutions in building design to regulate temperatures and reduce energy consumption. They offer diverse properties and can be incorporated through methods like direct incorporation, encapsulation, and more. Macro encapsulation is the prevailing trend due to its practicality and availability. This research undertakes a systematic literature review to examine the integration of PCMs with building envelopes, specifically focusing on various aspects across different climate zones in India. The primary objective is to investigate the macro encapsulation of PCMs and utilization in facades, analysing their performance in diverse Indian climate zones. The research compares incorporation methods, efficacy, advantages, and disadvantages, highlighting the relationship between PCMs and climate. Indian cities such as Delhi, Mathura, Ahmedabad, and Gurgaon are compared based on PCM selection, thermophysical properties, and incorporation techniques. The study emphasises the importance of proper macro encapsulation placement in building facades, considering weather conditions and direct sunlight. Lastly, the study provides a comprehensive overview of the limitations associated with different types of PCMs for building envelopes, drawing insights from specific examples in the Indian context. This research contributes to informed decision-making for architects, engineers, and policymakers seeking to enhance buildings’ thermal comfort and energy efficiency.