Photovoltaic (PV) systems are a promising renewable energy technology, but their performance is negatively impacted by high operating temperatures. This comprehensive review examines various cooling techniques for PV systems, emphasizing the role of phase change materials (PCMs) and comparing their effectiveness with other cooling methods. Passive and active cooling techniques, including water and air-based techniques, PCM integration, thermoelectric cooling, and radiative cooling, were systematically analyzed. The originality lies in its systematic classification of cooling techniques based on heat transfer mechanisms and a detailed evaluation of their performance, economic feasibility, and environmental impact. Quantitative findings indicate that active cooling methods achieve the highest temperature reductions (up to 30 °C) and power gains (15–23 %), but require additional energy and increase complexity of system. Among passive methods, optimized PV/PCM systems provide temperature drops of 10–33 °C and electrical power increases of 10–30 % without any energy input, outperforming conventional passive methods and approaching active cooling performance. Hybrid PV/T/PCM configurations further improve overall energy output by utilizing recovered heat, shortening payback periods from 8–10 years (standalone PV/PCM) to 3–6 years. Additionally, innovative radiative cooling materials and thermoelectric cooling techniques showed temperature reductions of up to 10°C and 15.2% enhancement in electrical efficiency, respectively. Despite their benefits, PCMs face challenges such as high costs, low thermal conductivity, and reliability issues. Life cycle analyses indicate that reducing PCM costs and incorporating advanced designs, such as finned containers or hybrid PV/T systems, enhances heat transfer and economic feasibility while significantly shortening payback periods. This review provides a comparative analysis of cooling techniques, quantifies performance parameters and identifies key research directions to optimize thermal management in PV systems for sustainable energy generation.