<p>Tire pyrolysis has emerged as a sustainable solution to the environmental concerns posed by the disposal of end-of-life tires, while also offering potential as an alternative fuel source. Among various outputs of the pyrolysis process, tire pyrolysis oil (TPO) has demonstrated promising applicability in diesel engines. This review explores recent developments and challenges associated with TPO production and utilization. Gasoline-like fractions obtained from tire pyrolysis have been frequently evaluated as diesel alternatives due to their energy content and chemical compatibility. Vacuum and microwave-assisted pyrolysis techniques have shown to be the most efficient, offering higher oil yields and significantly shorter processing times compared to conventional methods. Under optimized conditions, TPO with very low sulfur content can be produced, which becomes even more suitable for combustion applications after further purification using oxidative desulfurization techniques. When derived from low-sulfur tire feedstock, TPO can be used either directly or blended with conventional diesel in compression ignition engines. However, the higher viscosity of TPO, due to its complex hydrocarbon structure, impacts fuel atomization and combustion performance in engines. These challenges can be mitigated through blending or upgrading processes. The fuel’s usability is also influenced by its cetane number, aromatic content, and physicochemical properties. A higher cetane number and lower aromatic content improve ignition quality and reduce emissions. Proximate and elemental analyses are critical for characterizing waste tire composition and predicting pyrolysis behavior. Overall, TPO represents a viable, eco-friendly alternative fuel, contributing to both waste reduction and energy sustainability.</p> Graphical abstract <p></p>