It’s necessary to establish criterion of recycled fine aggregate for the application of recycled concrete and recycled mortar. Strength ratio and water demand ratio are important technical indexes of recycled aggregate. In this paper, a series experiments are hereby performed to determine testing and classification method for recycled fine aggregate. The experimental results indicate that fineness modulus of recycled sand influences inversely the strength ratio and water demand ratio. Furthermore strength ratio of various aggregates decreases with the increasing of water demand ratio in using identical cement type. The present paper also provides definition and testing method of water demand ratio and strength ratio. Consequently the quality classification criterion for recycled aggregate is proposed based on the double-control concept of water demand ratio and strength ratio and has been adopted by national code “Recycled fine aggregate for concrete and mortar”(Revision for Approval).