1D van der Waals heterostructures based on carbon nanotube templates are raising a lot of excitement due to the possibility of creating new optical and electronic properties, by either confining molecules inside their hollow core or by adding layers on the outside of the nanotube. In contrast to their 2D analogs, where the number of layers, atomic type and relative orientation of the constituting layers are the main parameters defining physical properties, 1D heterostructures provide an additional degree of freedom, i.e., their specific diameter and chiral structure, for engineering their characteristics. The current state-of-the-art in synthesizing 1D heterostructures are discussed here, in particular focusing on their resulting optical properties, and details the vast parameter space that can be used to design heterostructures with custombuilt properties that can be integrated into a large variety of applications. First, the effects of van der Waals coupling on the properties of the simplest and best-studied 1D heterostructure, namely a double-walled carbon nanotube, are described, and then heterostructures built from the inside and the outside are considered, which all use a nanotube as a template, and, finally, an outlook is provided for the future of this research field.