Waste cooking oil has surfaced as a hazardous waste that induces severe environmental contamination. Encapsulation technology presents a viable solution to regenerate the waste oil and augment the self-healing ability of asphalt materials. This study characterized capsules synthesized with selected waste oil for self-healing asphalt mixture, and evaluated the self-healing and environmental impact. The wetting ability, capillary, anti-aging, and self-healing performance of three potential healing agents were analyzed, and the optimal healing agent was obtained by evaluating the comprehensive behavior with the radar chart method. Capsules were synthesized using the ionic gelation method, and their thermal stability, chemical structure, mechanical performance, and morphology were characterized. Fatigue-healing performance asphalt mixture with capsules were investigated by indirect tensile fatigue test with intermittent time. Leakage of waste oil core were measure to verify it environmental impact to surroundings. Results showed that all healing agents could restore the aged asphalt, and waste rapeseed oil had superior overall performance with comprehensive fi value of 0.993 in radar chart evaluation. The compression characteristic of the capsules could transform from brittleness to plasticity as the water-to-oil(WO) ratio decreases from 15 to 5. SEM observation implied when the WO ratio varied from 10 to 15, the multi-pore structure of capsules could be appropriately filled. The addition of capsules in the mixture increased the fatigue life extension rate (HDf) of aged mixtures (with intermittent time 0.1 s∼0.8 s) by 10∼30%. Leakage of waste oil from the mixture was inhibited, substantially reducing 38% release of waste oil. This can serve as a means for the sustainable utilization of waste oil, thereby mitigating environmental pollution and negative effects caused by waste oil.