Battery thermal management (BTM) system is an indispensable component for large‐sized lithium‐ion battery packs used in aerospace and automotive applications. Besides providing a proper temperature range for batteries to operate, thus improving their efficiency, lifespan, and safety, the BTM system also needs to be well designed with considering the cost, weight, and practicability. In this paper, an internal passive BTM system is proposed for the cylindrical Li‐ion batteries. The design embeds a phase change material (PCM) filled mandrel inside the battery to achieve the cooling effect. A thermal test cell is first fabricated and tested in a wind tunnel under different cooling scenarios, and it is also used to verify a numerical thermal model. The proposed BTM system is further examined through the model and found to be able to create a preferable environment for batteries to operate. Specifically, the core BTM system consumes less PCM and achieves lower temperature rises and more uniform temperature distributions than an external BTM system. The proposed design can also exert its full latent heat to manage the heat generated from the battery without having a thermally conductive matrix, which is usually composite with PCM in external BTM systems. In addition, experiments show that the battery equipped with the proposed BTM system is ready for intensive cycling tests.