The concept of thermal energy storage in building gains a specific importance in the present energy scenario related to energy consumption and indoor thermal comfort. The material used to store the thermal energy which undergoes a phase change referred as PCM and it is considered as a possible solution for reducing energy consumption in the building by storing and releasing heat within a certain temperature range; it raises the building inertia and also stabilizes indoor air temperature fluctuations. The room temperature is controlled by imposing PCM inside the walls. An attempt has been made to compare room air temperature with and without the use of PCM inside the walls of constructed modular building unit. The PCM imposed modular building shows the reduced temperature fluctuations in room, the PCM absorbs and liberates excess heat which is gained from the outer side of the room and maintains constant inner room temperature. The PCM imposed walls of modular building unit have an ability to reduce 10-30% of heat load in comparison with the plain wall. The results showed that reduction in room temperature is about 2-4 degrees C and it has been concluded that the PCM imposed modular building unit has more energy saving opportunities than normal modular building unit.