The paper presents the state-of-the-art for tire shreds/chips for their use in highway construction. It has been concluded that shredding of scrap tires by machines produces shreds and chips of oblong shape and different sizes. These have been found to be compressible and yielding good strength parameters. The limited literature available on sand-tire chip mixtures indicates marked improvement in angle of shearing resistance. However there is paucity of data in respect of smaller uniform size chips for their application in highway construction.