As the world continues to seek more sustainable energy management solutions, phase change materials (PCMs) are becoming an increasingly important shift in thermal energy storage (TES). From building energy management to solar energy storage, PCMs offer a more attractive and effective heat storage solution and help reduce energy consumption, increase energy efficiency, and lower carbon emissions. However, the scientific and technological issues with the current PCMs-based technologies, like low TES properties including low thermal conductivity, latent heat, thermal instability, degradation, and leakage of PCMs are the major drawbacks in their practical applications. In this article, the thermophysical properties of PCMs were critically overviewed along with the comparison of different strategies conventionally used for synthesizing PCMs such as impregnation and encapsulation. Furthermore, a detailed discussion on improvement in TES properties of PCMs is provided by including different dimensional nanomaterials and nondimensional materials along with strategic improvements in PCM-based thermal management systems. The current challenges in the field of PCM technology are also highlighted to further optimize their thermal storage properties, enhancement techniques, and cost-effective manufacturing methods. The discussion of the potential cost-saving, economically feasible, and environmental benefits of PCM-based energy storage systems is also conferred. Finally, future direction and recommendations in PCM advancement through hybridized advanced nanomaterials are provided, which help open new insight toward the design and modulation of highly thermally stabilized PCM-based thermal management systems.