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Stimulated by the effect of the nearest neighbor interactions in vehicular traffic and motor proteins, we study a 1D driven lattice gas model, in which the nearest neighbor particle interactions are taken in accordance with the thermodynamic concepts. The non-equilibrium steady-state properties of the system are analyzed under both open and periodic boundary conditions using a combination of cluster mean-field analysis and Monte Carlo simulations. Interestingly, the fundamental diagram of current versus density shows a complex behavior with a unimodal dependence for attractions and weak repulsions that turns into the bimodal behavior for stronger repulsive interactions. Specific details of system-reservoir coupling for the open system have a strong effect on the stationary phases. We produce the steady-state phase diagrams for the bulk-adapted coupling to the reservoir using the minimum and maximum current principles. The strength and nature of interaction energy has a striking influence on the number of stationary phases. We observe that interactions lead to correlations having a strong impact on the system dynamical properties. The correlation between any two sites decays exponentially as the distance between the sites increases. Moreover, they are found to be short-range for repulsions and long-range for attractions. Our results also suggest that repulsions and attractions asymmetrically modify the dynamics of interacting particles in exclusion processes.