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Conventional asphalt pavements intensify urban heat island effects through excessive heat absorption and retention, requiring sustainable alternatives. Steel slag-modified asphalt was developed by incorporating processed steel slag into asphalt binder and evaluated using XRF, SEM, thermogravimetric analysis (TGA), and thermal distribution analysis. Steel slag contained 92.86% major oxides, reduced pavement surface temperature by 5-10°C, increased TGA residue at 700°C from 10-15% to 35-40%, achieved 17% production cost savings, and received 80% industry interest. These findings demonstrate enhanced thermal stability, durability, and heat resistance, confirming steel slag asphalt as a sustainable, scalable, and cost-effective solution for urban heat mitigation.