Fume suppression mechanisms and the effect of expanded graphite on the performance of asphalt were studied by applying infrared spectroscopy(FT-IR), X-ray diffraction(XRD), scanning electron microscopy(SEM) and comprehensive thermal analysis(TG, DSC). The experimental results confirm that asphalt which is mixed with expandable graphite will expand in the process of hot mix, and the expanded graphite layer will swell by the light component in the asphalt. The light component in the asphalt and PAHs adsorption on expanded graphite surface or part of the plug in the expanded graphite layer between plates made nucleation crystallization growth. And the Van der Waals force and the bonding of the lattice can effectively restrain the asphalt fume release. Meanwhile, the expanding agent with oxidative can spread into the asphalt, leading to asphalt oxygenated and plastic abate, while the ductility decreases. Expanded graphite, SBS modifier and environment- friendly plasticizers are used to composite modified asphalt. According to asphalt fume release experiment, normal test of asphalt performance, Brookfield viscosity test, RTFOT test and asphalt mixture tests(high temperature stability, low temperature stability, water stability), it has been proven that the modified asphalt’s performance is better than that of matrix asphalt and equivalent to that of SBS modified asphalt. Furthermore, it has good fume suppression effect.