Used tyres pose a threat to the environment, especially in developing countries, since the current disposal methods lead to environmental pollution. Pyrolysis liquid from used tyres can be used as a source of fuel to replace petroleum diesel. Microwave pyrolysis is an alternative valorization process that is supposed to save energy and, therefore, is environment friendly. In the current study, microwave pyrolysis was used to produce liquid fuel. Processing variable levels for microwave were power levels of 20, 30, 40, 50, 60, 80, and 100%; the reaction times were 8, 13, 18, 23, and 28 minutes; and the particle sizes were 25, 50, 100, and 200 mm2. Design-Expert 13 was used for data analysis and optimization, and GC-MS was used for chemical composition analysis, while physiochemical properties were tested using standard methods. Response surface methodology (RSM) was used to study the effects of operating variables and identify the points of optimal yields. For microwave pyrolysis, the highest liquid yield of 39.1 wt. % was at 50% power, 18 min reaction time, and particle size of 25 mm2. The yield decreased as the particle size increased. RSM gave conditions for optima in agreement with the experimental results. The calorific value for liquid fuel was 48.99 MJ/kg. GC-MS analysis showed that the oil comprised complex mixtures of organic compounds with limonene, toluene, and xylene as major components. The liquid fuel properties meet the required international standards and can be used as an alternative to diesel fuel.