The objective of this study was to investigate the feasibility of TiO₂ waterborne epoxy resin as fog seal and exhaust degradation material in asphalt pavement. To achieve this objective, a commercial anatase/rutile mixed-phase nano-TiO₂ was added to waterborne epoxy resin at various percentages. Prepared TiO₂ coating was characterized with the use of adhesive shear strength test and laboratory photocatalytic performance test, which was performed with a newly developed apparatus for the study of vehicle exhaust decomposition. In addition, the impact of TiO₂ coating on skid resistance and permeability of asphalt pavement was analyzed, with the British Pendulum, sand patch method, and pavement permeability test. The results of the experiments indicated that TiO₂ waterborne epoxy resin coating was very effective in decomposing NO, HC, and CO pollutants from automobile exhaust. Moreover, application of waterborne epoxy resin as fog seal could maintain the skid resistance and improve the impermeability of the pavement.