Due to the rising amount of waste rubber products, there is an urge to recycle these products and reduce waste disposal. Crumb rubber tyre in the sand decreases pore water pressure, creating a good drainage path and reducing liquefaction in saturated dense sand. This paper investigates the effect of the waste tyre and soil mixture (WTSM) layer around the piles in mitigating earthquake-induced liquefaction through finite element analysis in OpenSees platform. The effectiveness of this technique in reducing pile response is investigated through a parametric study with varied depth and thickness of the WTSM layer. It is estimated that a reduction in pile response is achieved with an increase in WTSM volume. It is also estimated that placing the same volume of WTSM layer depth-wise gives better control. Finally, for closely spaced piles WTSM mat of 1–1.5 m depth is proposed for liquefaction-induced pile damage control for buildings. Huge stock of scrap tyres may be used for pile response reduction due to liquefaction as recycling of waste tyre.