This article presents development of a novel self-healing technology for asphalt pavements, where asphalt binder rejuvenator is encapsulated within the compartmented alginate fibres. The key objective of the study was to optimise the compartmented alginate fibre design, i.e., maximising amount of rejuvenator encapsulated within the fibre. The results demonstrate that optimum rejuvenator content in the alginate fibre is of 70:30 rejuvenator/alginate ratio. The fibres are of sufficient thermal and mechanical strength to survive harsh asphalt mixing and compaction processes. Furthermore, results illustrate that zeer open asfalt beton (ZOAB) asphalt mix containing 5% of 70:30 rejuvenator/alginate ratio compartmented alginate fibres has higher strength, stiffness and better healing properties in comparison to the control asphalt mix, i.e., mix without fibres, and mix containing fibres with lower rejuvenator content. These results show that compartmented alginate fibres encapsulating bitumen rejuvenator present a promising new approach for the development of self-healing asphalt pavement systems.