Microencapsulated eutectic mixture of phase change material (ME-PCM) was incorporated in different mortar ratios (that are used as an outer building envelope)to elucidate the ME-PCM effect on the thermo-physico properties. Thermo-physico parameters like compressive strength, bulk density, porosity, thermal conductivity, specific heat and water absorption were considered in the present work. Results obtained revealed that the physical parameters like compressive strength and bulk density decrease due to ME-PCM incorporation while water absorption increases with the increase in the ME-PCM content. Moreover, thermal conductivity and thermal diffusivity of mortar samples decrease gradually as compared to control samples, on the other hand, heat storage capacity increases with an increase in ME-PCM content. The findings of work will be of great use in the future and ME-PCM may be used in outer envelopes also as it epitomizes the delayed heat transfer from outer to inner envelope due to decreased thermal conductivity.