Smart textiles especially Phase Change Materials (PCMs) are getting attention because these materials can provide regulation of wearer’s body climate and provide comfort in the temperature fluctuations during the physical activity like sports. These materials have the advantage of latent heat energy storage that can absorb and release high amount of energy over a narrow temperature range around the human’s body temperature to provide thermal comfort. Phase Change Materials (PCMs) absorb energy during the heating process as phase change takes place and release energy to the surroundings during the reverse cooling process. The types of phase change materials that are suitable for sports applications are hydrated inorganic salts, linear long chain hydrocarbons, Poly Ethylene Glycol (PEG). The concept of thermal comfort and working of PCMs in the textiles garments are important for determining the functionality of PCMs. Phase Change materials are micro capsulated in the shells by “Situ polymerization technique before application to sportswear and garments. The PCMs microcapsules are incorporated in the sportswear and garments by fiber technology, lamination, foaming and coating. The testing of clothing containing micro capsulated PCMs is discussed after the incorporation of PCMs in textiles. Quality parameters that are key for getting good results are mentioned i.e. particle size, thermal conductivity, fire hazard treatment, durability and performance of micro capsulated PCMs and clothing. In the last section findings, suggestions and conclusion are discussed.