The growing demand for sustainable infrastructure has accelerated research into alternative materials for asphalt concrete. This study examines the mechanical and durability performance of asphalt concrete modified with single-use plastic waste primarily polyethylene and polystyrene and waste pulp oil derived from agricultural and industrial by-products. By adopting a bio-refinery-based and circular economy approach, the research explores the vaporization of plastic and biomass waste to enhance pavement quality while addressing critical environmental issues, such as plastic pollution and sludge disposal. Modified asphalt mixtures prepared with varying proportions of shredded plastic waste and pulp oil. Their performance was evaluated on properties. Results confirm that these eco-friendly additives significantly enhance the strength, stiffness, and longevity of asphalt concrete. The integration of these waste materials not only improves performance but also contributes to environmental conservation, cost reduction, and sustainable construction practices. The review seeks to critically assess the feasibility of different recycled plastics for asphalt pavement based on compatibility properties, storage stability, microstructure, thermo-rheology, and mechanical performance and to highlight challenges and suggestions for the future.