In the thermal energy storage area, microencapsulated phase change material (MPCM) is getting more popular among researchers. When phase change materials (PCMs) shift from one phase to another at a specific temperature, a significant quantity of thermal energy is stored. The PCM application focuses on upgrading worldwide energy conservation efforts in light of the rapidly dwindling fossil fuels. The thermal energy supplied by PCM is significantly influenced by the choice of supporting materials and encapsulation methods. A solution to the volume change issues of PCM, phase separation, and leakage is the PCM microencapsulation technique. One of the most common methods to increase the effectiveness of thermal storage material is attained by using PCM with microencapsulation. The preparation processes and thermal characteristics of the MPCM are summarized in this paper. This paper gives information about MPCM with its types, properties, testing, and characterizations. Tables describe specific examples of PCM with thermal properties. Applications in various fields are defined. This review gives as much information to help and be useful for new researchers in the field of thermal management systems to guide their future research.