Tip clearance represents a simple design intervention strategy to mitigate the high hydraulic penalties often associated with microchannel heat sinks. This approach has not been widely explored for enhanced microchannel heat sinks, having previously focused only on conventional (uniform) tip clearance design for straight microchannels. In view of this, the present work investigates the performance of an enhanced heat sink, specifically oblique-cut fin microchannels, with tip clearance designs. Two different designs are considered, namely conventional/uniform tip clearance (utc) and a newly conceptualized modulated tip clearance (mtc). Numerical simulations are conducted using ANSYS FLUENT 2022 R1 first for straight microchannels, which are considered the baseline to which oblique-cut fin microchannel designs are compared. The simulations are carried out under laminar flow regime including conjugate heat transfer in a heated solid substrate for flow rates of 250 – 650 mL/min. The results indicate that utc significantly reduces pressure drop though can increase thermal resistance for the oblique channels. The underlying physical mechanisms responsible for this observation are elucidated by examining thermal and flow behaviours in and around oblique cut slots. Based on the flow behaviour in oblique slots with utc, modulated tip clearance (mtc) concept is introduced and investigated. When compared to utc cases, mtc tends to reduce the thermal resistance substantially, though depending upon oblique cut angle and flow rate. However, the Performance Index (PI) shows that utc improves the overall performance in the range of 10–15 % compared to that observed with mtc cases, though the factor of improvement reduces closely to 5 % at 650 mL/min. In addition, the overall performance in terms of heat transfer and hydraulic pumping power further show that utc and mtc design strategies are competitive, and warrant further multi-objective optimization investigations to determine the best design option overall.