This paper reviews the application of phase change materials (PCMs) for improving the performance of air conditioning systems. The different methods of integrating PCMs into air conditioning systems are presented. Moreover, the effects of PCM geometry, flow, and heat transfer characteristics on the performance of air conditioning systems and the potential use of PCMs in increasing the energy savings and coefficient of performance of air conditioning systems are also discussed. Recent studies on the thermodynamic (energy and exergy), economic, and environmental benefits of integrating PCMs into air conditioning systems are reviewed. Several methods for the preparation and optimal selection of PCMs are proposed to improve the performance of air conditioning systems, and then the challenges relating to PCM properties, optimal thickness, and PCM containers are highlighted. The economic aspects, humidity effect, life cycle assessment, and use of solid-solid PCMs are cited as potentially important topics for future research.