The objective of this study is to characterize the properties of typically adopted drainage layer materials in VA, OK, and ID. A series of laboratory tests have been conducted to quantify the volumetric properties, permeability and mechanical properties of the laboratory-compacted asphalt treated and cement treated permeable base specimens. The modified test protocols to determine the dynamic modulus of the drainage layer materials have been provided, which can be followed to determine the dynamic modulus of the drainage layers as level 1 input in Mechanistic-Empirical (M-E) pavement design. The measured dynamic moduli have been used to calibrate the original NCHRP 1-37A model to facilitate its application on drainage layer materials for prediction of the dynamic modulus as level 2 input. The compressive strength of the cement treated permeable base mixture of different air void contents has also been quantified in laboratory. Numerical simulations are conducted to investigate the location effects and the contribution of the drainage layer as a structural component within pavement. The optimal air void content of the drainage layer is recommended for Virginia, Oklahoma and Idaho based on the laboratory-determined permeability and the predicted pavement performances during 20-year service life.