Under the influence of large temperature differences in an impermeable pavement layer of wide embankment in permafrost regions, liquid water accumulates at the bottom of the impermeable cover. The phenomenon is known as the pot‐cover effect and leads to an increase in soil water content and a reduction in bearing capacity of wide embankments. At present, water vapor and liquid water migrations and their effect on embankment thermal‐moisture stability have not been fully confirmed. To better understand the moisture transport and accumulation process within embankments, hydrothermal field monitoring was conducted from 2009 to 2011 on an asphalt concrete layer highway in Beiluhe, central Tibet Plateau. The field monitoring results show that soil moisture content between 50 and 250 cm below the pavement continuously increases with the number of freeze‐thaw cycles, with the largest increase during the 2 years being 6.4%. Then, a coupled hydro‐vapor‐thermal transport model was established and verified. Furthermore, the model was used to analyze the numerical recurrence of the pot‐cover effect. The simulation indicates that the upward migration of liquid water during the freezing period is less than the downward migration during the thawing period, while vapor migrates downward during the thawing period but upward during the freezing period. The migration of water vapor within the embankment during the freezing period is the main cause of the pot‐cover effect in permafrost regions. In addition, the research results can provide new ideas for understanding the internal mechanism of thermal‐moisture dynamics of the embankment and the stability prediction of permafrost engineering.