Tire-derived aggregate (TDA) is an entirely recycled material created by processing scrap tires, which are shredded into a fundamental geometric shape, typically measuring from 5 to 30 cm in size. TDA possesses desirable properties such as low earth pressure, improved drainage, and a lightweight structure, making it an ideal material for numerous civil engineering applications. Unfortunately, the environmental suitability of TDA use has previously been questioned. This article outlines that TDA does not release a significant amount of potentially toxic compounds, the leaching rate in surrounding water environments is low, and TDA can even be a medium to remove nutrients and toxic organic and inorganic compounds commonly found in agricultural land and urban runoff. This study aims to collect the most up-to-date scientific data on the environmental impact of scrap tires and evaluate the data specifically for TDA applications in civil and environmental engineering applications. TDA has been proven to be an environmentally safe, long-lasting, cost-effective, and sustainable resource with many potential applications in civil engineering. Guidelines should be developed for specific projects to achieve a circular economy for end-of-life tires in the form of TDA to avoid potential environmental issues and problems.