The disposal of waste rubber and scrap tyres is a significant issue globally; disposal into stockpiles and landfill poses a serious threat to the environment, in addition to creating ecological problems. Fuel production from tyre waste could form part of the solution to this global issue. Therefore, this paper studies the potential of fuels derived from waste tyres as alternatives to diesel. Production methods and the influence of reactor operating parameters (such as reactor temperature and catalyst type) on oil yield are outlined. These have a major effect on the performance and emission characteristics of diesel engines when using tyre derived fuels. In general, tyre derived fuels increase the brake specific fuel consumption and decrease the brake thermal efficiency. The majority of studies indicate that NOx emissions increase with waste tyre derived fuels; however, a few studies have reported the opposite trend. A similar increasing trend has been observed for CO and CO2 emissions. Although most studies reported an increase in HC emission owing to lower cetane number and higher density, some studies have reported reduced HC emissions. It has been found that the higher aromatic content in such fuels can lead to increased particulate matter emissions.