Thermal susceptibility is one of the biggest challenges that asphalt pavements must overcome. Asphalt mixture’s thermal susceptibility can increase problems related to permanent deformation, and the expansion-contraction phenomenon triggers thermal cracking. Furthermore, there is a common worldwide interest in environmental impacts and pavements. Saving energy and mitigating the urban heat island (UHI) effect have been drawing the attention of researchers, governments, and industrial organizations. Pavements have been shown to play an important role in the UHI effect. Globally, about 90% of roadways are made of asphalt mixtures. The main objective of this research study involves the development and testing of an innovative aerogel-based product in the modification of asphalt mixtures to function as a material with unique thermal resistance properties, and potentially providing an urban cooling mechanism for the UHI. Other accomplishments included the development of test procedures to estimate the thermal conductivity of asphalt binders, the expansion-contraction of asphalt mixtures, and a computational tool to better understand the pavement’s thermal profile and stresses. Barriers related to the manufacturing and field implementation of the aerogel-based product were overcome. Unmodified and modified asphalt mixtures were manufactured at an asphalt plant to build pavement slabs. Thermocouples installed at top and bottom collected data daily. This data was valuable in understanding the temperature fluctuation of the pavement. Also, the mechanical properties of asphalt binders and mixtures with and without the novel product were evaluated in the laboratory. Fourier transform infrared (FTIR) and scanning electron microscope (SEM) analyses were also used to understand the interaction of the developed product with bituminous materials. The modified pavements showed desirable results in reducing overall pavement temperatures and suppressing the temperature gradient, a key to minimize thermal cracking. The comprehensive laboratory tests showed favorable outcomes for pavement performance. The use of a pavement design software, and life cycle/cost assessment studies supported the use of this newly developed technology. Modified pavements would perform better than control in distresses related to permanent deformation and thermal cracking; they reduce tire/pavement noise, require less raw material usage during their life cycle, and have lower life cycle cost compared to conventional pavements.