With the rapid development of China's economy, the development speed and scale of transportation engineering have also expanded rapidly. But the problem of environmental pollution problems have also gradually emerged, and the use of environmental protection materials has become an inevitable trend of green transportation development. This paper puts forward the traffic optimization method at five-way intersection based on green building materials and signal processing. Firstly, the green and environment protection hot-melt reflective marking paint and color asphalt concrete pavement materials are used to construct the travel space of motor vehicles, non-motor vehicles and pedestrians at five-way intersection. Then, on this basis, the phase design method based on clipping method and the corresponding signal timing method are proposed to optimize the traffic flow travel time at five-way intersection. Finally, the evaluation and analysis is done by the VISSIM traffic simulation software, the results show that this method based on green building materials effectively defines the travel space of five-way intersection. On this premise, the traffic efficiency is further improved through signal processing optimization technology, which effectively reduces the number of conflict point at the five-way intersection and provides a basis for the research on the optimal control of deformed intersections based on green building materials and signal processing.