People are shifting from use of fossil fuel based processing oils to naturally occurring oils, and restriction on PCA rich extender oils by December 2009 leads to search for naturally occurring oils. According to the KEMI report, products with polycyclic aromatic compounds, PCAs, levels exceeding 3% by weight must be labeled. The report pointed out that worn tyre tread material was being spread on the roadsides, introducing high amounts of PCA into the environment. PCA is having toxic effects on aquatic organisms. For the sidewall tyre rubber, the way to improve the properties is a stepwise downsizing method of gel particles in reclaimed rubber to a micro-nano scale and its excellent dynamic performance in tire sidewall were introduced by this work. In the present work, two naturally occurring oils, neem oil and kurunj oil, were characterised in a 100% Natural Rubber based formulation, a NR/BR blend based Bias Truck and Rib Type Tyre Tread Cap compound and a SSBR/NR/BR blend based Radial Passenger Tyre Tread compound. Compounds made with naturally occurring oils showed better abrasion properties. These oils were found to be suitable also on the basis of low PCA content. The results for the tyre sidewall showed that the size of gel particles decreased from several micrometers to micro-nanometers with the increase of reclaiming degree, accompanied by reduced molecular weight and widened molecular weight distribution of sol fraction. The addition of reclaimed rubber with low Mooney viscosity improved the dynamic mechanical properties of the natural rubber/butadiene rubber blends effectively, including wet resistance and rolling resistance. Moreover, the flexing fatigue resistance has also been improved dozens of times compared to traditional tire sidewall.