The new generation of smart highway (NGSH) has become an irresistible global trend to improve transport efficiency and safety. The exploration of the features and framework for NGSH can guide us to upgrade the current highway system. This paper summarizes the fundamental features of the NGSH from the perspective of the interactive evolution of automobile industry and road transport. In line with the popularity of automated and connected vehicles, the primary technical features of the NGSH are proposed as (I) complete elements sensing, (II) cyber-physical systems, (III) cooperative vehicle-infrastructure applications, and (IV) 5th generation mobile communication technology. The corresponding physical framework and data flow are introduced, in which three data attributes (data accuracy, dimensionality, and freshness) are highlighted to describe the data requirements for various scenarios. The development path of the NGSH is further discussed in terms of the different vehicle automation levels. The characteristics of five levels of NGSH are identified from R1 to R5. Different combinations of NGSH level and vehicle automation level lead to distinct system functions. Several urgent problems in the current stage are pointed out in terms of system compatibility, standard specification, and information security. This paper provides new insights for sustainable and reproducible highway reformation, drawing some implications for NGSH design.