<p>Asphalt binders and mixes, which are commonly employed in road infrastructure, confront issues such as rutting and fatigue cracking caused by temperature fluctuations during mixing and compaction, as well as service life. Phase Change Materials (PCMs), both organic and inorganic, are emerging as innovative additives capable of controlling temperatures by storing and releasing thermal energy, hence improving asphalt mix performance and durability. In this review article, an effort has been made to comprehensively study the effect of PCMs on asphalt binder and mixes. The review is structured into three phases: firstly, discussing different types of PCMs and their characteristics, highlighting popular choices in asphalt mixes; secondly, detailing the impact of PCM-incorporated asphalt binders on properties such as viscosity, penetration, ductility, along with rheological properties; and finally, examining how PCMs influence asphalt mix performance in areas like rutting, fatigue, and freeze-thaw cycles. The study identifies better performing organic and inorganic PCMs and suggests future research scope to optimize their use that effectively enhance asphalt binder and mix performance.</p>