The paper examines the behaviour of a highway embankment in an area of discontinuous permafrost about 18 km northwest of Thompson, Manitoba. Frequent maintenance has been required. Research involved site investigation, laboratory testing, installing instruments, data collection, and numerical modeling. The paper reports data from almost 3 years of observation. Measurements of ground temperatures suggest that formerly ice-rich foundation soil has thawed under the toe and side-slope. Approximate values of segregation potential have been back-calculated from observations of settlements and temperatures. Results provide insight into the nature and cause of deformations of the embankment.