The desired speed that drivers can drive without being obstructed or influenced by other road users is characterized as free-flow speed. However, free-flow speed can be influenced by other factors such as the characteristics of the vehicle, driver, road conditions, weather, and speed limits. Due to the country’s heterogeneous traffic conditions, this study aims to develop and assess free-flow speed models based on different vehicle classes and road characteristics in Malaysia. Data were sampled at 16 sites of multilane highways in Malaysia. Analyses of free-flow speed were conducted based on individual and grouped vehicle classes. Subsequently, multiple regression analyses were conducted based on these grouped vehicle classes to develop free-flow speed models. The findings show that the model with the grouping of all vehicles, which includes heavy vehicles and motorcycles, is the most suitable model as it yields the best results based on the performance indicators. The development of a free-flow speed model based on local traffic conditions, which can accurately estimate free-flow speed without having to conduct field measurements, is essential for saving time and costs in data collection. The findings from this study will contribute to improving the design of multilane highways and, ultimately, ensuring the sustainable environment of road networks.