A novel Cu-TiO2 Hybrid Nanocomposites adsorbed Nanoencapsulated Phase Change Material (HNNP) was developed. The current research work aims to develop PCM-based cement mortar used as plastering material with increased Energy Utilization Efficiency. The work addresses the poor thermal conductivity of the polymer based shell material (melamine) by adsorbing Cu-TiO2 hybrid nanocomposites on the nanocapsule (HN). The HNNP capsules are capable of freezing and melting at a temperature of 24.02 °C and 25.76 °C, with latent heat of 146.71 J/g and 144.46 J/g respectively. The phase change temperatures of HNNP are in the human comfort temperature zone. The adsorption of HN over nanoencapsulated PCM (NP) has greatly enhanced the thermal conductivity by 137.19% over NP. The HNNP exhibited excellent thermal stability and thermal reliability. Furthermore, the behaviour of the cement mortar in terms of thermal conductivity and compressive strength was studied by dispersing NP and the HNNP capsules. The maximum inclusion of HNNP in the cement mortar greatly enhanced its thermal conductivity, whereas the behaviour of cement mortar with NP inclusion, was contrary, resulting in reduced thermal conductivity. The compressive strength was reduced with the increased percentage of both NP and HNNP capsules in the cement mortar. Albeit, the compressive strength was reduced due to the maximum inclusion of NP and HNNP in the cement mortar, the resulted compressive strength is acceptable for plastering material. From the above stated results, the HNNP is a viable candidate, having a great potential for cooling needs in buildings.