Abstract: Despite the existence of conventional methods for recycling chips, solid-state techniques have become popular, whereby waste metals are directly recycled into consolidated products with the desired shapes and designs. We investigated the feasibility of recycling phosphor bronze chips through a hot extrusion process using aluminum powder as a metal binder for the fabrication of a metal-fiber-reinforced aluminum matrix composite. To do so, mixtures containing 20vol%–50vol% of chips were prepared, cold-compacted, and extruded. The quality of the consolidated samples was evaluated by determining the density of the fabricated composites and studying their microstructures. In addition, we performed tensile and hardness tests to evaluate the mechanical properties of the fabricated composites. We also analyzed the fracture surfaces of the samples to study the fracture mechanism as a function of the volume fraction of phosphor bronze chips in the fabricated composite. The results indicated that the most effective consolidation occurred in the sample containing 20vol% of chips extruded at 465°C in which the chips serve as ideal fibers for improving the mechanical properties, especially the ultimate tensile strength, in comparison with those of Al matrixes that contain no chips but are produced under the same conditions.