The present paper deals with the procedure for modification of 80/100-paving grade asphalt cement using reclaimed polyethylene (PE) derived from low-density polyethylene carry bags collected from domestic waste. The details of the preparation of the PE-modified binder and the results on variation of binder properties with blending temperature and blending time are presented. Results of various tests carried out on the different PE blends indicated enhanced binder properties like improved storage stability, resistance to aging, degradation, and temperature susceptibility. It is observed that viscosity at a given temperature increases with the addition of PE in the binder. Dynamic shear rheometer test results revealed that PE-modified binders (when subjected to the same stress) experienced lower strains than the neat asphalt; in addition, tanδ values of PE-modified binders considerably decreased as the PE content was increased. It was found that 5% PE content in modified asphalt by weight is adequate in terms of enhanced binder properties studied. © 2011 American Society of Civil Engineers.