The isothermal compressed air energy storage is a potential technique for large-scale energy storage. In this study, the molten salt thermal storage is integrated with the afterburning-type isothermal compressed air energy storage system, which uses liquid piston compression technique, to enhance the thermal performances. Thermodynamic models of the hybrid energy storage system were developed, and the genetic algorithm was used to optimize multiple parameters to enhance the energy efficiency. Four operation modes, i.e., the high, medium-high, medium-low, and the low output power modes were proposed, to enhance the operational flexibility of the hybrid energy storage system. When the system operates in the operation mode of medium-low output power, a portion of afterburning heat is stored in the molten salt and used in the operation mode of low output power. Results show that the roundtrip efficiency of high, medium-high, medium-low, and the low output power modes are 63.57 %, 59.33 %, 57.13 %, and 83.28 %, respectively. Exergy analysis was carried out to quantify the irreversibilities of key components. In the three modes of operation with afterburning, the combustion chamber has the highest portion of exergy loss, and in the operation mode without afterburning, the exergy loss of heat exchangers is higher than that of expanders.