Wetting/drying studies conducted on stabilized expansive clays showed that there are problems in stabilized base layers due to moisture movements during summer and winter seasons. Understanding the impacts of these seasonal changes and their related strength and deformation properties in stabilized base layers on the performance of pavement systems is important in assessing the usability of the pavement in the long run. In this paper the effect of loss of stabilization effectiveness on pavement performance is being evaluated by assessing the remaining life in equivalent single axle loads on the surface of the pavement section by determining the compressive strain on top of the subgrade. This is accomplished by numerically simulating a pavement section with finite element analysis using stabilized subsoil properties from the experimental studies. As a part of this numerical analysis, the influence of different pavement parameters or variables on the performance of the pavement structure is also studied. The parameters studied are thickness of the asphalt concrete layer, thickness of the base course layer (treated subgrade), strength and stiffness of both subgrade soil and base course layer. Stabilized layer and its thickness have a profound influence on the total permanent deformation of the pavement system.