Hot water heat stores with stratification are a common technology used in solar energy systems and reuse of waste heat. Adding a PCM module at the top of the water tank would give the system higher storage density, and compensate heat loss in the top layer. The work presented here includes experimental results and numerical simulation of the system using an explicit finite-difference method. Experiments and simulations were carried out using different cylindrical PCM modules. With only 1/16 of the volume of the store being PCM, 3/16 of water at the top of the store was held warm for 50% to 200% longer and the average energy density was increased by 20% to 45%. Furthermore, these 3/16 of water were reheated by the heat from the module after being cooled down in only 20 min. (C) 2002 Elsevier Science Ltd. All rights reserved.