In this study, the thermal and hydrodynamic performance of a microchannel with oblique fins are enhanced by using NEPCM slurry coolant and introducing tip clearance over the fins. NEPCM slurry coolant could enhance the cooling performance of the heat sink substantially. The lower average bulk temperature and higher average specific heat of the coolant was observed when NEPCM slurry coolant is used. The disadvantage of utilizing NEPCM slurry as the coolant is higher Euler number, which needs a higher pumping power. This issue was addressed through introducing tip clearance to the microchannel. It was shown that, there is a range of t/Wc ratio in which the higher Nusselt number with a lower Euler number is expected. This desired range is 0.20 < t/Wc < 0.375 when the microchannel is working with NEPCM slurry and 0.16 < t/Wc < 0.26 when pure water employed as the coolant.