This paper proposes a method to make diagnostic/prognostic judgment about the health of a tire, in term of its wear, using existing on-board sensor signals. The approach focuses on using an estimate of the effective rolling radius (ERR) for individual tires as one of the main diagnostic/prognostic means and it determines if a tire has significant wear and how long it can be safely driven before tire rotation or tire replacement are required. The ERR is determined from the combination of wheel speed sensor (WSS), Global Positioning sensor (GPS), the other motion sensor signals, together with the radius kinematic model of a rolling tire. The ERR estimation fits the relevant signals to a linear model and utilizes the relationship revealed in the magic formula tire model. The ERR can then be related to multiple sources of uncertainties such as the tire inflation pressure, tire loading changes, and tire wear. The estimated ERR are further processed to compute the unloaded tire radius (UTR). The UTR directly reflects the tread depth loss that the proposed on-board tire health monitoring system (THM) can detect and diagnose.