Asphalt binders are essential in pavement construction due to their strong adhesion, moisture resistance, and durability under heavy traffic and diverse climatic conditions. The high demand for infrastructure has intensified global dependence on petroleum-based asphalt, highlighting the need for renewable alternatives. Bio-asphalt, derived partly or entirely from biomass such as agricultural residues, waste oils, and lignocellulosic materials, represents a promising sustainable alternative. Subsequently, Nypa fruticans (nipah palm), a mangrove species abundantly available in the coastal areas of Riau Province, Indonesia, was utilized in this study as a bioresource. Nipah fruit peel biomass (2 kg) was pyrolyzed at 350°C for 6 hours to produce bio-oil, which was subsequently distilled to obtain a purer bio-binder with properties comparable to PEN 60/70 asphalt. The distilled product was characterized using softening point (ASTM D36), ductility (ASTM D113), penetration (ASTM D5), flash and fire point (ASTM D92), and density (ASTM D70) tests. The results showed that a 20% bio-oil tar concentration provided the most optimal performance across all evaluated parameters, demonstrating the potential of nipah-based bio-asphalt as an eco-friendly binder for sustainable pavement applications. The results showed that at 20% bio-oil tar concentration with biochar and gum rosin, the binder exhibited optimum properties with penetration 76 mm/10 seconds, density 1.099 g/cc, ductility 20.9 cm, softening point 59°C, and flash/fire points 223/238°C, demonstrating its potential as a sustainable substitute for PEN 60/70 asphalt.