[en] In this paper, reusing Al alloy chips via novel recycling process of powder thixoforging (PTF) is presented. PTF is a direct machining chips conversion method with partial melting into high quality final products with improved mechanical properties compared to parent alloy. 520.0 Al alloy powders from milling chips were produced via mechanical alloying (MA). The PTF product exhibited remarkable combination of mechanical properties of 168 HV hardness, compression yield strength (CYS) of 515 MPa, ultimate compression strength (UCS) of 1121MPa, and substantial fracture plastic strain of 45 %. Additionally, the PTF product showed relative weight reduction of 55.7 %. As a consequence, the microstructure refinement and modification during PTF have significant effects on dramatic improvement of mechanical properties, leading to considerable combination of superior strength and ductility