The use of intelligent compaction (IC) in asphalt overlay includes the use of double-drum IC rollers, a roller measurement system, global position system (GPS) radio/receiver/base station, infrared temperature sensors, and an onboard computer reporting system. GPS based mapping and optional feedback control help to overcome the drawbacks associated with conventional compaction such as identifying soft spots, achieving consistent roller patterns, and monitoring asphalt surface temperature and levels of compaction with adequate quality control or quality assurance (QC/QA). Cost-effectiveness of both compaction types was measured in terms of initial and roadway lifecycle cost based on the cost inputs received from South Korea and other published literatures. Roadway lifecycle cost was reported based on the improvement in in-place density, smoothness, and fatigue life. The results of this study showed that: (1) with IC an approximate 4.1% initial cost reduction can be achieved compared to conventional compaction; (2) QC/QA cost is found to have the most significant effect on the higher initial cost of conventional compaction compared to other associated costs whereas intelligent roller cost is the vital cost category for IC; (3) improvement of in-place air voids and density due to the IC has shown that at 97% field density (or at 3% air void content) the State Highway Agency can save approximately 44% over a 20-year service period; and (4) agency cost is observed to be reduced by approximately 62% with the IC method based on the 25-year analysis period due to the increase in fatigue life.