The use of waste, recycled, and modified materials is increasingly popular in roadway construction for sustainability and pavement longevity. This research examines the combination of steel slag (SS) and low-density polyethylene (LDPE), commonly used in plastic bags and steel manufacturing by-products, to mitigate environmental pollution. LDPE was tested as a binder modifier in two bitumen grades, 60–70 and 80–100, at concentrations of 3%, 5%, and 7% by weight. SS was used as a replacement for coarse aggregate. The physical properties of both modified and unmodified bitumen grades and SS were analyzed before creating and testing hot-mix asphalt (HMA) samples. The dynamic modulus of these samples was measured at temperatures of 4.4 °C, 21.1 °C, 37.8 °C, and 54.4 °C with frequencies of 0.1 Hz, 0.5 Hz, 1 Hz, 5 Hz, 10 Hz, and 25 Hz. Master curves were developed, and the dynamic modulus data underwent design of experiment (DOE) and computational intelligence (CI) analyses. Using KENPAVE, a mechanistic–empirical tool, the analysis assessed the design life and enhancements in damage ratio for each modifier and grade. The results showed that adding LDPE increases the softening point and penetration grade but decreases ductility due to increased bitumen stiffness, leading to premature fatigue failure at higher LDPE levels. Both 3% LDPE and 3% SS-modified LDPE improved Marshall Stability and dynamic modulus across all temperature and frequency ranges. Specifically, 3% LDPE enhanced stability by 13–16% and 3% SS-LDPE by 30–32%. The KENPAVE results for 3% LDPE showed a design life improvement of 19–25% and a damage ratio reduction of 15–18%. In comparison, 3% SS-LDPE demonstrated a design life improvement of 50–60% and a damage ratio reduction of 25–35%. Overall, this study concludes that 3% LDPE- and 3% SS-LDPE-modified HMA in both bitumen grades 60–70 and 80–100 provide optimal results for improving pavement performance.
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