Many experimental and numerical approaches have been developed to evaluate paving materials and to predict pavement response and distress. Micromechanical simulation modeling is a technology that can reduce the number of physical tests required in material formulation and design and that can provide more details, e.g., the internal stress and strain state, and energy evolution and dissipation in simulated specimens with realistic microstructural features. A clustered distinct element modeling (DEM) approach was implemented In the two-dimensional particle flow software package (PFC-2D) to study the complex behavior observed in asphalt mixture fracturing. The relationship between continuous and discontinuous material properties was defined based on the potential energy approach. The theoretical relationship was validated with the uniform axial compression and cantilever beam model using two-dimensional plane strain and plane stress models. A bilinear cohesive displacement-softening model was implemented as an intrinsic interface and applied for both homogeneous and heterogeneous fracture modeling in order to simulate behavior in the fracture process zone and to simulate crack propagation. A disk-shaped compact tension test (DC(T)) with heterogeneous microstructure was simulated and compared with the experimental fracture test results to study Mode I fracture. The realistic arbitrary crack propagation including crack deflection, microcracking, crack face sliding, crack branching, and crack tip blunting could be represented in the fracture models. This micromechanical modeling approach represents the early developmental stages towards a 'virtual asphalt laboratory,' where simulations of laboratory tests and eventually field response and distress predictions can be made to enhance our understanding of pavement distress mechanisms, such its thermal fracture, reflective cracking, and fatigue crack growth.