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Buried pipelines have been widely used to transport petroleum-based products over long distances in permafrost regions. Field observations reveal that they are endangered by rapid permafrost thawing and resulting massive soil movements, despite adopting some measures to protect pipeline foundation permafrost. A new mitigation technique is proposed to slow down the permafrost thawing ulteriorly. With this technique, a seasonal air-cooled embankment (SACE), mainly composed of a crushed rock layer, supports the pipeline and transfers the heat from the pipeline to ambient air in the cold seasons. A scale model test with the controlled air and oil temperatures was carried out to evaluate the proposed measure. The temperature and volumetric unfrozen water content of the permafrost subgrade beneath both the SACE and the direct-buried pipeline, as well as ground surface displacements, were measured during the whole testing process. A comparison of the hydrothermal process of the subgrade permafrost under the SACE and the direct-buried warm pipeline indicates that the proposed measure can substantially mitigate the rapid thawing of permafrost by controlling the geothermal regimes of the pipeline.