This paper reports a study on the thermal stability and flame-retardant properties of microencapsulated phase change materials (PCMs) with clay nano-particles (Clay-NPs) doped gelatin/sodium alginate shell. The novel microcapsules were fabricated by the technique of complex coacervation using gelatin and sodium alginate as the shell and PCM n-eicosane as the core. Their flame retardant property as well as their practicable thermal performances when incorporated into woven cotton fabrics by pad-dry-cure were investigated. Thermal storage/release properties of the prepared microcapsules were analyzed using DSC instrument. Thermal gravimetry (TG) analysis was performed to measure the thermal stability and surface morphology of the microcapsules was observed by means of optical microscopy and SEM. The DSC results indicated that the latent heat storage capacity of prepared microcapsules changed in range of 97-114 J/g. The microcapsules had spherical shape with particle sizes between 1.37 mu m and 1.6 mu m. The PCM microcapsules (PCMMs) and nano-composite PCM microcapsules (NCPCMIVIs) with clay-NPs doped gelatin/sodium alginate shell were found to have good potential for developing thermal comfort in textiles. Comparing with conventional PCMMs, NCPCMMs have significantly better thermal stability. Nano-composite structure of the NCPCMIVIs, in which clay-NPs doped in the polymeric shell structure, attributed to increase the shell thermal stability. Improved flame retardant properties of the cotton fabrics treated with NCPCMs were declared as a result of flame retardant tests. Thermo-regulating properties of the fabrics were proved by thermal history (T-History) measurement results from releasing heat from microcapsules.