Phase change materials (PCM) with their high thermal storage density at almost isothermal conditions and their availability at wide range of phase transitions promote an effective mode of storing thermal energy. Literature survey evidently shows that paraffins and salt hydrates provide better thermal performance at competitive cost. This review paper is focused on the classification of various paraffins and salt hydrates. To acquire long term productivity of LHS system, the thermo-physical stability of both paraffins and salt hydrates; and their compatibility with various plastic and metallic container materials play a vital role. Likewise, the lower thermal conductivity of PCMs affects the thermal performance of LHS system. This article reviews the various thermo-physical performance enhancement techniques such as influence of container shape and its orientation, employment of fins and high conductivity additives, multi-PCM approach and PCM encapsulation. The performance enhancement techniques are focused to improve the phase transition rate, thermal conductivity, latent heat storage capacity and thermophysical stability. This review provides an understanding on how to maximize thermal utilization of PCM. This understanding is underpinned by an analysis of PCM-container compatibility and geometrical configuration of the container. (C) 2016 Elsevier Ltd. All rights reserved.