An attempt was made to determine the permanent characteristics of asphalt mixtures produced using dune sand. Most of the research studies to date have concentrated on sand asphalt characterization using dune sand, but only a few studies have been conducted using dune sand in hot mix asphalt. The objective of this research is to assess the replacement of fine aggregate materials in asphalt mixtures with dune sand and to evaluate its effect on the permanent deformation of the asphalt mixtures. Two types of dune sand were collected from eastern desert areas of Iran. The Marshall test, indirect tensile strength test, dynamic creep test and wheel track test were undertaken to study and compare the properties of asphalt mixtures containing two types of dune sand and crushed sand. The Marshall and indirect tensile strength test results for the three types of mixture were very similar. However, the results of the dynamic creep test and wheel track test exhibited greater rutting in mixes containing dune sand. Based on the results obtained, the asphalt mixture containing dune sand has only the potential for being used in low or medium volume roads.