Around the world, initiatives are being taken to replace gasoline and diesel fuel due to the impact of the fossil fuel crisis, increase in oil price, and the adoption of stringent emission norms. Increase in energy demand, stringent emission norms and depletion of oil resources led the researchers to find alternative fuels for internal combustion engines. Many alternate fuels like Alcohols, Biodiesel, methanol, ethanol, LPG, CNG etc have been already commercialized in the transport sector. In this context, pyrolysis of solid waste is currently receiving renewed interest. The disposal of waste tires can be simplified to some extent by pyrolysis. The properties of the Tyre pyrolysis oil (TPO) derived from waste automobile tires were analyzed and compared with the petroleum products and found that it can also be used as a fuel for compression ignition engine. Test was carried out using 10%,15% and 20% blend of pyrolysis oil with diesel.D85 P15 blend found better in brake thermal efficiency. Ethanol was added in the concentration of 5%, 10% and 15% to Diesel-TPO blend. It was concluded that emission of HC and CO found reduced after adding ethanol into TPO-Diesel blend.