Is there any fiction that's based on a world with different physics?
E.g. a world where momentum is not conserved, perpetual motion is possible, decreasing entropy etc
Not exactly this, but "Dragon's Egg" by Robert Forward takes place on a neutron star with a surface gravity billions times that on Earth.
The Gods Themselves by Isaac Asimov explores this very idea of what would happen if two parallel universes were to interact but had different laws of physics.
Some of Greg Egan's novels are based on very novel Physics I believe. His more "accessible" novel Permutation City is a HN favorite.
"The Void Trilogy" by Peter F. Hamilton has a "constructed" subuniverse where you can alter matter with thoughts and it has different temporal flow.
Bob Shaw wrote a duology "The Ragged Astronauts" & "The Wooden Spaceships" in which the ratio of a circles circumference to it's diameter is 3. As far as I can tell, the only reason this factoid is included is to defuse any arguments about the plausibility of other elements of the setting (a binary planet with a shared atmosphere such that it is possible for a feudal society to stage an invasion from one to the other using balloons).
Celestial Matters by Richard Garfinkle has Ptolemaic cosmology and Aristotelian physics.
The Planiverse: Computer Contact with a Two-Dimensional World
by A.K. Dewdney is sort of a modern take on the classic Flatland by Edwin Abbot, and manages to improve upon it considerably.
The Long Earth series by Terry Pratchett and Stephen Baxter posits an infinite set of parallel Earths that can be reached with a trivial but unorthodox electronic device. You have to travel to them incrementally, one sideways step
Nightfall by Isaac Asimov, while not exactly different physics but it's in a totally physical "universe."
Raft by Stephen Baxter comes to mind. It's his first book, so it's far from perfect, but it's quite interesting.
Some of his other books the physics are the same as ours but the locations are so exotic that they might as well qualify.
This is subtly present in Neal Stephenson's Anathem, late in the book it's a plot device that comes up a few times.
Can't say I've heard of anything like this _explicitly_, but Star Trek _kinda_ skates around the edges of that with the whole "warp drive" thing to some degree. Not an expert in ST lore by any means, but that whole franchise's physics world would have to be different than ours for the idea of a "warp field" to exist.
Redshift Rendezvous (I forget who wrote it) has alternate physics you can step into where the speed of light is 30 m/s. You can get relativistic effects while jogging. (I mean, I guess that's just the same physics with one of the parameters changed, but it changes quite a bit...)
“The Inverted World” by Christopher Priest involves a world that appears to be based on hyperbolic geometry I believe.
Check out The Machineries of Empire series by Yoon Ha Lee. The first instalment (Ninefox Gambit) is one of my favorite books. The physics of the world is based on an interesting "calendrical" system which relies on the population's faith in the calendar to persist.
The Emberverse series by SM Sterling. The laws of physics change such that technology no longer works and is no longer capable of working. Ex: water couldn't boil enough to power a steam engine.
The first book is the best - subsequent books are almost pure fantasy.
Every fantasy with magic goes against the three laws of thermodynamics.
The Practice Effect, David Brin