Granulated truck waste tire was first pyrolyzed in a fixed-bed reactor under an inert atmosphere and at certain conditions. The highest oil yield of which was 47.0 wt %, was attained at 550 and 20°C/min. The oil was separated into a fraction of 150–300°C boiling points, so-called diesel-like fuel (DBY), with a calcium oxide (CaO) catalyst at an optimal ratio of 2 wt %. The fraction was subjected to desulfurization, bleaching, and deodorization, respectively, at specific conditions, and this process resulted in a decrease of 75.8 wt % compared to its initial sulfur content of 5000 ppm. The upgraded diesel-like oil (DAF) fraction contained chemical compounds with carbon numbers C6–C26. In addition, its physicochemical characteristics showed a kinematic viscosity of 3.13 cSt (40°C), a density of 832 g/L (15°C), a lower heating value of 42.32 MJ/kg, and an H/C molar ratio of 1.73. Lastly, the DAF was tested with commercial diesel fuel for its motor and emission performance via a single-cylinder diesel engine. All in all, it can be said that the DAF may be harnessed as a substitute for diesel fuels after its further upgrading via catalytic hydrodesulfurization etc.