An experimental investigation was conducted on a three-phase cement-asphalt emulsion composite (CAEC), in which asphalt was introduced as a cushion layer in between coarse aggregates and cement mortar matrix by dispersing asphalt emulsion-coated coarse aggregates into cement mortar matrix. Laboratory tests on fatigue, strength, rigidity, temperature susceptibility, and stress-strain relationship were studied to evaluate the mechanical properties of the CAEC. The test results showed that CAEC possesses most of the characteristics of both cement and asphalt—namely, the longer fatigue life and lower temperature susceptibility of cement concrete and the stronger toughness and higher flexibility of asphalt concrete. It is expected that CAEC can be an alternative for semirigid base-course material. However, it slightly reduced the strength compared with control cement concrete.