Plastics are predominant in numerous sectors like packaging, agriculture, hardware, electronics, and many others. Annual plastic demand has been rapidly growing in the last few decades because of the increasing dependency on plastics. As a consequence, massive amounts of plastic waste are being generated every year. These plastic wastes are non-biodegradable, and hence their disposal poses a serious threat to the ecosystem and causes significant environmental problems such as endangering the safety of marine life, wildlife, air, water, and soil, etc. A large portion of plastic waste ends up in landfills, and only a small fraction is recycled. The continuous dependence on landfills as the main disposal method for plastic waste is costly and ineffective. Common solutions to plastic waste management are incineration and recycling; however, incineration emits harmful pollutants and greenhouse gases that contribute to ozone layer depletion and global warming; moreover, recycling is expensive and inefficient. As an alternative to recycling and incineration, the pyrolysis process can convert plastic wastes into more valuable fuel products. Pyrolysis is a thermal process that converts raw material into pyrolysis liquid, solid wax, and non-condensable gases in the absence of oxygen. This process is attractive because it is economical and energy-efficient, and it can be used to convert various types of plastic waste into valuable products. In recent years, there have been significant developments in pyrolysis applications in liquid fuel production from plastic wastes. This work reviews recent advances in and challenges for the pyrolysis process for converting plastic wastes into a valuable alternative fuel, focusing on studies of advanced pyrolysis processes published over the last five years. The paper also highlights the numerical modeling of pyrolysis of plastic wastes and the potential impact of pyrolysis on the future of sustainable waste-management practices of plastics.