Abstract: A large number of worn tires are produced every year in China, which poses a serious threat to the environment. Reasonable recycle of worn tires is of great importance and conversion of these tires into rubber powder as raw material is a potential solution. Modification principles and methods of desulfurization and surface activation of rubber powder are summarized. Furthermore, research progress of waste tire recycling by adding it into raw rubber, plastic composite and asphalt is reviewed. Detailed discussion on the effects of rubber powder type, size and compatibility on the properties of these materials is presented followed by the principles of interaction between matrix and rubber powder. Future development of pulverized rubber industry is also prospected.