Environmentally friendly cooling and heating systems in buildings is the need for sustainable development. The utilization of phase change materials(PCM) in the cooling system is a potential solution for minimizing active power requirements as well reduce the size of components in a VCR system. A prototype of an Air-PCM (T25™) heat exchanger was investigated. The maximum cooling effect of 2.05 kW_th was obtained when 75% of the PCM was solidified. Based on the results, PCM based cooling has the potential to reduce the size (cooling capacity) of the air conditioner in the range of 13 to 46 %.