Abstract: The mechanism of impact compaction and asphalt rubber formation as well as the function of asphalt rubber stress absorbing membrane interlayer (AR-SAMI) in pavement structure are analyzed separately. A composite engineering application test of impact compaction, asphalt rubber and AR-SAMI was carried out based on the strong-foundation and thin-pavement theory. It is shown that the mechanism of impact compaction on rockfill embankment placed on a weak muddy soil foundation is the combined action of dynamic compression and dynamic consolidation; the formation mechanism of asphalt rubber is that both physical and chemical reactions take place when crumbed rubber and base bitumen are mixed together at high temperature, but physical swelling is the main process; AR-SAMI is applied for the purpose of absorbing stress, resisting reflective cracks, proofing water and improving the adhesion between road structure layers. Composite engineering applications of the technology have performed very well.