In the context of climate change and global warming, the attention on the environmental cost of pavements is increasing. To scientifically quantify the environmental cost of pavements, accurate prediction of rolling resistance and fuel consumption is important. In this paper, a comprehensive review on rolling resistance of asphalt pavements and its environmental impact was presented. At first, the commonly used definitions of rolling resistance and texture characterisation methods of pavement surface were introduced. Then, the influence of different factors on rolling resistance was discussed. Next, the measuring and modelling approaches of rolling resistance were reviewed. At last, methods which can be used to predict fuel consumption and environmental impact were presented. It was found that an ideal approach for texture characterisation of pavement surface is to make use of the entire wavelength spectrum of road profiles and consider the enveloping curve of tire treads. Furthermore, the fact that rolling resistance can be influenced by different factors introduces difficulties in accurate measurement and modelling of rolling resistance. Moreover, testing methods and conditions have a significant effect on the empirical modelling of rolling resistance, while it is difficult and time-consuming to consider all the energy loss in the computational modelling of rolling resistance. In addition, the prediction of fuel consumption and environmental impact highly depends on the formulating methods and measuring conditions. The work presented in this paper will help to gain more insight into rolling resistance and its environmental impact, which ultimately promotes the construction of environmentally friendly pavements.