In order to avoid intermittent energy supply problems, thermal energy storage (TES) systems have been playing an important role in concentrated solar power (CSP) plants. Thus, a significant focus has been given on the improvement of TES systems from the past few decades. In this paper, a numerical model is developed to obtain the detailed heat transfer characteristics of lab-scale latent thermal energy storage system which consists of molten salt encapsulated spherical capsules and air. The melting process and the corresponding temperature and velocity distributions in every capsule of the system are predicted. The enthalpy-porosity approach is used to model the phase change region. The model is validated with the reported experimental results. The influence of initial condition on the thermal performance of the TES system is predicted.