The key factors for effective pavement management system (PMS) are timely preservation and rehabilitation activities, which provide benefit in terms of drivers’ safety, comfort, budget and impact on the environment. In order to reasonably plan the preservation and rehabilitation activities, the pavement performance models are used. The pavement performance models are usually based on damage and distress observations of rural roads, and can be applied to forecast the performance of urban roads. However, the adjustment of the parameters related to traffic volume, speed and load, climate conditions, and maintenance has to be made before adding them to PMS for urban roads. The main objective of this study is to identify the performance indicators and to suggest pavement condition establishment methodology of urban roads in Vilnius. To achieve the objective, the distresses (rut depth and cracks), bearing capacity, and international roughness index (IRI) were measured for fifteen urban roads in service within a two-year period. The distresses, rut depth and IRI were collected with the Road Surface Tester (RST) and bearing capacity of pavement structures were measured with a Falling Weight Deflectometer (FWD). The measured distresses were compared to the threshold values identified in the research. According to the measured data, the combined pavement condition indices using two methodologies were determined, as well as a global condition index for each road. The analysed roads were prioritized for maintenance and rehabilitation in respect to these criteria. Based on the research findings, the recommendations for further pavement condition monitoring and pavement performance model implementation to PMS were highlighted.