A transient, two-dimensional finite-difference model is developed to assess temperature fluctuations in asphalt pavements due to thermal environmental conditions. Fluctuations in temperatures significantly affect pavement stability and the selection of asphalt grading used in pavements. The ability to accurately predict asphalt pavement temperature at different depths and horizontal locations based on thermal environmental conditions will greatly help pavement engineers in performing back-calculations of pavement modulus values and in selecting the asphalt grade to be used in various pavement lifts through detailed examination of predicted pavement temperature distributions on various pavement mixes. A more sophisticated selection of asphalt through specification of less expensive asphalt binders in lower lifts is thus possible for the provision of more economical solutions to rising pavement construction costs. As part of the model validation, sensitivity analyses are performed to study the impact of a n...