In order to solve the problems of passenger car tires application and high energy consumption and pollution when used twin screw extruder to break the cross link network of rubber in high temperature, the activated rubber was prepared with the waste engine oil by twin screw extrusion. The effect of regeneration process, extruding temperature and rubber dosage on desulfurization degree, rheological properties of crumb rubber were investigated. The results show that waste oil significantly improve the sol content of crumb rubber, and the extruding temperature and rubber dosage have great effect on the performance of crumb rubber modified asphalt. When the extruding temperature is 180℃, crumb rubber modified asphalt has the best high and low rheological properties and good workability as well. The highest rubber dosage is 30% for the balanced properties.