To address issues relating to large thermal resistance and low heat transfer efficiency between and inside magnetocaloric materials (MCM) in all-solid-state room-temperature magnetic refrigeration technology, this study adopted the method of inserting high thermal conductivity materials (HTCM) into MCM and coupling Peltier elements between MCMs to enhance the heat transfer inside MCM and between microcells, thereby improving the refrigeration performance of the system. In doing so, a two-dimensional simulation model was developed using COMSOL Multiphysics software. The cooling performance enhancement effect of the system resulting from heat transfer improvement within MCM and between MCMs was investigated separately. Furthermore, the impacts of various system operating parameters (such as the number of micro-cell divisions, initial operating temperature, heat transfer time, magnetic field strength, Peltier input voltage), different HTCMs and insertion volume ratios on the system’s cooling performance were explored. The simulation results reveal that, in comparison with the original magnetic refrigeration system, the optimized heat transfer time of the system following enhanced heat transfer within the MCM is reduced from 180s to 8s, accompanied by a 115% increase in the maximum temperature span. Furthermore, coupling the Peltier elements elevates the maximum temperature span by 274%.