Abstract This communication presents the thermal performance and economic evaluation of the thermal management system (TMS) for cooling applications using calcium chloride hexahydrate as a phase change material. This experimental work was done to shift the peak time cool energy demand for off peak time. The PCM was selected for TMS on the basis of availability in the desired temperature range and long term thermal behavior. The designed system was tested with air conditioning system for cool energy storage and discharged with three heating loads (1 kW, 2 kW and 3 kW) for the real life application. The energetic and exergetic efficiencies were also calculated and found to be highest for 1 kW and lowest for 3 kW heating load. The economic evaluation of the TMS has been carried with respect of per unit cost of electricity generated by coal, diesel and solar energy and found that payback time is low for solar based generation in comparison to electricity generation by other sources. The results of this study were also compared with those of the theoretical values and are found in good agreement with each other.