AbstractEnergy and exergy analysis comparison of lauric and stearic acid phase‐change material (PCM)–based energy storage system integrated with engine exhaust have been investigated in the present study, which provides more realistic assessment than the conventional energy analysis. On the basis of thermodynamic laws, energy, exergy, charging efficiencies, and availability of PCM thermal storage with various mass fractions have been investigated at engine full load. The exergy saved for PCMs in the overall system is quantified and were compared. The results revealed a considerable enhancement in energy and exergy efficiency for thermal energy storage with lauric acid PCM due to its enhanced thermophysical properties. Energy and exergy of the storage medium for lauric acid PCM with 0.4 kg mass fraction, increased by 68% and 57.5% compared with stearic acid PCM thermal storage integrated with a diesel engine. Also, energy and exergy efficiency of charging and integrating the system with stearic acid PCM decrease with increase in mass fractions. Thus, lauric acid PCM can be used as thermal storage medium at high temperatures for exhaust heat recovery from engines and also an option for green technology.