This paper aims to review the performance analysis of interlocking concrete block pavement with by-products such as coconut fibers, and construction and demolition recycled materials, and to compare their skills with asphalt pavement, especially for light-traffic urban road applications. The focus is on mechanical behavior (mix parameters and the influence of by-products), pavement design, sustainability (the heat island effect), the management of contaminant concentrations within infiltration related to permeability, and Life Cycle Assessment. Considering the overall performance analysis, interlocking concrete block pavement was the most attractive alternative because it was approximately 33–44% cheaper in the maintenance process, cooler over a range of 2.2–15 °C, and more permeable by 0.4 cm/s to 0.6 cm/s than asphalt pavement, saving costs and improving drainage and human thermal comfort. However, asphalt pavement was around 35% cheaper during the construction phase (mainly due to energy consumption), and it presented a 32% lower nitrogen oxide concentration. This paper showed the advantages and disadvantages of both types of pavements. A further breakdown should be developed and integrated into the decision-making process about choosing between solutions.