Compounded aluminum hydroxide (ATH) flame retardants have been widely used for their low cost and environmentally friendly characteristics. However, previous research lacks a systematic and comprehensive comparison. In addition, the combustion characteristics and phase characterization of asphalt binders are not taken into account either. In this work, flame retardants, for instance, APP, Sb₂O₃, ZB, and LDHs, were compounded with ATH. The flame retardant behavior, together with the smoke suppression behavior, of asphalt binders with compounded flame retardants was determined by LOI and CCT. Furthermore, mechanisms on flame retardants were investigated. It was found that ATH compounded with ZB significantly reduced the heat smoke release and suppressed the formation of toxic volatiles during asphalt combustion. This was because ATH/ZB facilitated the formation of polyaromatic structures and improved the resistance of the char layer. ATH compounded with APP showed an antagonistic effect in the limiting oxygen test because the reaction between ATH and APP inhibited and delayed the decomposition of ATH during asphalt combustion with more aluminum phosphate presenting relatively poor barrier properties produced.