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Potholes are a major issue on Malaysian roads, often caused by water infiltration that weakens pavement layers. Conventional repairs are short-lived and costly. This innovation introduces a Hybrid Asphalt Mixture combining Asphalt grade 60/70, Aggregate AC 14, and three waste-derived materials: Palm Oil Fuel Ash (POFA) from biomass burning, Garnet Waste from pipe blasting, and Sawdust from woodworking industries, all sieved to 25 microns. Laboratory tests including chemical (XRF, SEM, AFM), physical (penetration, softening point, dynamic shear rheometer), and mechanical (Marshall stability, Dynamic creep, Resilient Modulus) show improved strength, durability, and water resistance, with self-healing properties that reduce crack propagation. Incorporating 6% hybrid materials saves 6% construction cost per km, while reducing environmental impact by converting waste into sustainable road material. This user-friendly solution enhances road safety by minimizing water ponding and extending pavement life. Strategic commercialization with JKR, LLM, PLUS, LPT, CIDB, and Roadcare (M) Sdn Bhd positions this innovation as a smart, green, and durable alternative for Malaysia’s road infrastructure.