The nature of the interaction process between asphalt cement and crumb rubber modifier (CRM) has not been fully understood. Two main types of mechanisms that affect the produced binder properties are reported: particle swelling and degradation (devulcanization and depolymerization). These mechanisms occur as the binder is subjected to different combinations of interaction time and temperature. Insight into the mechanisms by which the interaction between the two materials takes place through monitoring the changes in the rheological parameters of the binder is provided. The effects of the interaction process variables, time and temperature, are explained. The effect of CRM properties, including particle size and material source, is also discussed.