This project explores the integration of phase change materials (PCMs) into photovoltaic (PV) panels to enhance their thermal regulation and overall performance. PCMs absorb and release latent heat during phase transitions, helping to maintain optimal operating temperatures, which in turn reduces thermal fluctuations and improves the electrical efficiency of solar cells. The design and fabrication of an integrated PV-PCM system are accompanied by experimental analysis, with results showing that PCM integration can lower PV panel temperatures by 10-20 C, leading to a 5-15% increase in efficiency and extended panel lifespan due to reduced thermal cycling stress. While challenges such as PCM degradation, low thermal conductivity, and economic feasibility remain, potential solutions include the use of nanoparticle-enhanced PCMs and hybrid cooling systems. This technology offers a promising pathway toward more efficient, reliable, and sustainable solar energy systems.