The thermal performance of building walls can be improved using phase change materials (PCMs). The objective of this study was to estimate the optimal location of a “thin” PCM layer to be incorporated into frame walls, parallel to the frame and insulation, for the purpose of increasing thermal mass and reducing peak heat fluxes through the wall. Based on a mathematical model built in this paper, it was found that an optimal location of this “thin” PCM layer can be estimated, and it was affected by the thermal properties of PCM and the environmental conditions. The optimal locations for the PCM layer were found to be closer to the exterior surface of the wall when the thickness of PCM layer, the heat of fusion of PCM, and the PCM melting temperature were increased, while the optimal location was closer to the interior surface of the wall when the interior surface temperature of the wall was increased.