Warm mix asphalt (WMA) offers significant environmental benefits over hot mix asphalt (HMA) by reducing energy demand and greenhouse gas release during production, while still maintaining performance and durability. Asphalt pavements undergo severe stress due to heavier axle loads. To address these challenges while reducing CO2 emissions, WMA technologies have achieved recognition due to their potential to mix and compact at temperatures without compromising the mixture performance. This study investigates the impact of Zycotherm SP (ZT SP), a chemical additive on the volumetric properties and moisture-induced damage of warm asphalt mixes. In addition to this, self-healing properties were also assessed. The Zycotherm SP was incorporated in the mix at various replacement levels, i.e., 0.1%, 0.2%, and 0.3% by bitumen weight. The optimum binder content required was identified, and design mix for WMA mixes was optimized for evaluating its physical and mechanical properties. Based on the test results, optimum Zycotherm SP content was identified at 0.2%. It was noticed that addition of Zycotherm SP does not hamper the mix performance.