He is renowned for his wide grin and big lips (a trait he shares with fellow rocker Mick Jagger) and for hanging scarves from his microphone stand during performances, as well as dancing with it and lifting it from the ground. In the band's early days, he was also known for having a bottle of Jack Daniel's on stage with him, but he no longer does this.

In 1976, he had a passionate love affair with fashion model Bebe Buell, during which he fathered actress Liv Tyler (Buell initially claimed that the father was Todd Rundgren to protect Liv from Steven's then drug addiction). In 1978, he married Cyrinda Foxe, an ex-Warhol model, and the former wife of New York Dolls' lead singer David Johansen, and fathered plus-sized model Mia Tyler. He and Foxe divorced in 1988; in 1997, she published Dream On, a memoir of life with Tyler. In 1999, she announced that the paperback edition of Dream On would feature nude photos of him; he sued to prevent this (as the nude photos were supposed to have been returned as part of the divorce settlement), and won. In 2000, Foxe announced that she would be selling the nude photos online, but then had a stroke, and the website was closed down. In the aftermath of the stroke - and the revelation that it was due to a brain tumor - Foxe and Tyler reconciled, and he was noted as providing her with substantial support, both emotional and financial, until her death in 2002. In 1988, he married makeup artist Teresa Barrick, with whom he fathered two children: a daughter, Chelsea, and a son, Taj Monroe; in February 2005, they announced that they were separating due to personal problems. It was recently announced that they will be divorcing in 2006.

Tyler and his guitar-playing Aerosmith colleague Joe Perry were often called the Toxic Twins, for their legendary intake of stimulants; they have now been clean for several years. Perry and Tyler met when Perry was working in an ice cream parlour, and they formed a band with bassist Tom Hamilton. The original lineup of Aerosmith showcased a second guitarist, Ray Tabano, who was replaced early into the formation of Aerosmith by guitarist Brad Whitford; drummer Joey Kramer was also added. After spending time on the Boston club circuit, under the tutelage of their first manager, Frank Connelly, they secured New York management in the form of Steve Leber and David Krebs, a record deal and released their self-titled debut album. It was followed up with the classics Get Your Wings, Toys In The Attic and Rocks, which catapulted Aerosmith to international fame and recognition.

Tyler's relationship with his musical "other half" Perry is worthy of note, and well-chronicled in the Aerosmith "Behind the Music"; Tyler, apparently much more dedicated to the band, seemed to resent Perry's passive attitude and envied Perry's prioritization of the women in his life. The tense dynamic between Tyler, Perry, and their once-friendly girlfriends was apparently a leading factor in the gradual decay and eventual temporary breakup of Aerosmith in the latter half of the '70s.

He has also made numerous film and television appearances. In 2003, Steven received an honorary degree from Berklee College of Music, and, in 2005, received an honorary doctorate from the University of Massachusetts Boston.

In 2005, he guested on Santana's song Just Feel Better.

On March 22, 2006, the Washington Post reported that Tyler would undergo surgery for an "undisclosed medical condition." A statement from Tyler's publicist read in part, "Despite Aerosmith's desire to keep the tour going as long as possible, doctors advised him not to continue performing to give his voice time to recover." Aerosmith's remaining North American tour dates in 2006 were cancelled as a result.