The thermal underwater glider (TUG) is an important device currently used for exploring ocean resources and monitoring ocean temperature. The TUG harvests ocean thermal energy (OTE) through working medium and converts into net buoyancy variation for propulsion. The phase change material (PCM) filled in the thermal engine is the key working fluid for the TUG to harvest OTE. A large volume change rate of PCM at ocean temperature difference is important for improving the TUG's efficiency and performance. Previous studies focus on N-hexadecane for OTE conversion with limited performance. This paper proposes N-hexadecane (C16) based composite PCM for an improved thermal-to-mechanical conversion process. The experimental test results show that the composite PCM (C16:C24 = 9:1 wt%) exhibits a similar phase transition temperature (17.8–18.4℃) with C16 (18.2–18.6℃). As compared to pure C16, the volume shrinkage of this composite PCM was 26.67% higher than that of C16 and the volume expansion rate was 30.74% higher than that of C16, indicating that the composite PCM based TUG could output more net buoyancy variation and propulsion power. Following experimental test, molecular dynamics simulation of the composite PCM is carried out. The reason for this volume expansion/shrinkage improvement was revealed as the larger C–C bond length and H–C–C bond angle variations. The composite materials provided in this paper could potentially improve the propulsion performance of TUG.