Over the past few decades, India has seen a rise in vehicular traffic, which has led to the need for the development of extended road networks. However, due to improper road maintenance strategies, pavements are failing and deteriorating before the end of their design life. A pavement’s ability to support the traffic load and withstand environmental stresses depends on the quality of its surface characteristics. Surface characteristics, including pavement distress like potholes, edge subsidence, pavement cracking, and roughness, affect the performance of the pavement and the traffic stream characteristics that cause an increase in travel time and road user costs. This study, therefore, investigates the impact of pavement surface conditions on traffic speed, the most important traffic stream characteristic. The study focuses on two main pavement surface characteristics, namely pavement distress and roughness, and their effect on traffic stream characteristics, specifically speed. The study conducted data collection of road geometry, pavement surface characteristics, and traffic data from six different road sections. The speed data was collected using TIRTL under free-flow conditions, and the 50th and 85th percentile speeds (V50 and V85) were calculated for various vehicle classes. Regression analysis models were developed to establish the relationship between percentile speeds and independent variables such as Pavement Condition Index (PCI), carriageway width, shoulder widths, and percentage of pavement distress. It is found that road roughness has a more significant impact on traffic operational performance than road geometry and pavement distress. Additionally, the study revealed that pavement surface characteristics have a negligible impact on the speeds of heavy vehicles, such as light commercial vehicles and medium commercial vehicles compared to other classes of vehicles.