Recycling of old and deteriorated granular road base of flexible pavements by cement stabilization has been used by Local Governments and Road Agencies in many parts of Australia for almost 25 years. The recycling of the existing road base material offers an environmental friendly construction method and a cost effective option for rehabilitation of deteriorated pavement structures. The recycling old road base material effectively in road construction can address public concerns relating to the vast quantities of useful materials being discarded and wasted. The re-using of these materials can reduce both the consumption of virgin materials and the cost of extracting and processing new raw materials. This will ensure environmental sustainability in road reconstruction at the same time preserving our important physical assets, roads and highways, for our future generation. This paper will provide a general review of the benefits of the recycling to the road agencies and communities in Australia and will also talk about the processes involved in the insitu stabilization of pavement road base using cement. The mechanistic approach adopted in the pavement rehabilitation design will be presented.