The importance of environmental consciousness and sustainability is increasing among transportation governing bodies worldwide. Many government bodies are concerned with maximizing the usage of recycled substances in road construction. Therefore, assessing the effect of recycled materials consumption is essential, mainly when designing new ‘green’ pavement types. The primary objective of this study is to investigate the impact of different treatments on improving the interfacial transition zone (ITZ) of coarse recycled concrete aggregate (CRCA) and its application in asphalt mixes. Such an aim is accomplished by enhancing its physical and mechanical characteristics, as well as its microstructure. The surface morphology, chemical composition, and intermix phases of the ITZ area and calcium silicate hydrate (CSH) compounds for CRCA were evaluated using scanning electron microscopy (SEM), an energy-dispersive X-ray analyzer (EDAX), and X-ray diffraction analysis (XRD). The performance of asphalt mixtures that included treated and untreated CRCA was also examined using different tests. It was found that heat treatment is an effective technique for enhancing the ITZ. However, cracks were seen in the mortar of CRCA when exposed to high temperatures (500 °C), which adversely affects the characteristics of the mortar. Acid treatment appeared to be an effective approach for improving the ITZ area. Nevertheless, the treatment that used acetic acid, a weak acid, was more effective than HCl acid, a strong acid. The outcomes revealed that the ITZ microstructure is significantly enhanced under different treatment types; however, microstructure improvements mainly included increased surface homogeneity and CSH compounds and a reduced Ca/Si ratio. It was also found that the asphalt mixtures with different proportions of untreated CRCA exhibited enhanced resistance to rutting. Furthermore, their tensile strength ratio (TSR) values were above the minimal level requirements. Moreover, the asphalt mixture with 30% CRCA, which was treated with various treatment methods, demonstrated a significant improvement in the mixtures’ mechanical properties; therefore, its application is highly successful and an environmentally friendly solution.