The Small Business Innovation Research (SBIR) Phase I project will investigate the feasibility of developing autonomic-healing hot mix asphalt. A major objective of this proposed study is to develop self-healing hot mix asphalt (by means of phase-dispersion of healing agent) that would actively arrest microcracks. This study will involve mechanical tests to determine the healing efficiency of autonomic-healing hot mix asphalt, in terms of fracture load, and results will be compared to those obtained from traditional hot mix asphalt. The proposed study also will determine the optimum application rate and the optimum size of the dispersed healing agent spot. America's highway system includes more than 3.9 million miles of highways, arterials, and local roads and streets. About ninety-six percent of paved roads in America are surfaced with hot mix asphalt. Total disbursements for highways in year 2000 were 126.7 billions dollars. The price of hot mix asphalt continues to climb due to oil shortage and large demand. Improving the life of asphalt used in transportation construction will contribute to reducing the demand for crude oil. In addition, extending the life of hot mix asphalt will prolong the rehabilitation cycle periods, which reduces the costs and congestion during rehabilitation/reconstruction and increases the safety of both drivers and workers in the work zone. This technology, if proven feasible, has the potential to save $20 billions each year as a result of extended life of hot mix asphalt