AZ91D magnesium alloy is prepared by hot extrusion of recycled machined chips and its fractures and mechanical properties are investigated at various extrusion conditions. Cold-press is employed to prepare extrusion billets of AZ91D magnesium alloy chips, and then the billets are hot extruded at 573K-723K with an extrusion ratio of 11:1. The results show that tensile strength and elongation of the extrusion magnesium alloy with the extrusion temperature of 673K and the extrusion rate of 0.08mm/s can reach 380MPa and 6%, respectively. Fracture surface presents a mix mechanism of dimple-like fracture and gliding fracture. Due to grain refinement by cold-press and hot extrusion, mechanical properties of extruded rods are much higher than those of as-cast AZ91D magnesium alloy. Also, much lower energy consumption is necessary for this recycling compared to the conventional casting process. Solid state recycling is an efficient method for magnesium alloy chips recycling.