This paper numerically investigates the heat transfer characteristics of a mesoscale liquid film slurry flow containing micro-encapsulated phase change material (MEPCM) in the presence of evaporation. The two-phase evaporating liquid film flow is modeled using one-fluid volume-of-fluid (VOF) formulation. During the evaporation process of the base fluid, the concentration of MEPCM in the slurry film increases as it flows along a heated plate, resulting in a continuous variation of its effective thermal properties. The effect of MEPCM on the evolution of the liquid film thickness under different operating conditions is presented. It is shown that the MEPCM suppresses the rate of decline in the liquid film thickness, which results in a higher heat transfer coefficient compared to that of pure liquid film under similar operating conditions. This study also provides an understanding towards delaying of the dry-out condition in slurry liquid film flow evaporation compared to that of the pure fluid.