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Phase change materials (PCMs) for thermal energy storage have been intensively studied because it contributes to energy conservation and emission reduction for sustainable energy use. Recently, the issues on shape stability, thermal conductivity, and mechanical properties have been addressed and effective measures have been proposed to deal with the current dilemmas in various applications of PCMs. In this review, research progress on improved integrated performance and other aspects in microencapsulation of PCMs (MEPCMs) and form-stable PCMs (FSPCMs) is introduced. In addition, diverse applications of PCMs, such as thermal management devices, smart textiles and intelligent buildings, are also discussed. Finally, the challenges and prospects of PCMs are summarized.