Superior mechanical properties of the recycled specimen by solid-state recycling were introduced at first. AZ31 Mg machined chips were recycled by extrusion at 673 K with the different extrusion ratios. The oxide contaminants were dispersed more uniformly in the recycled specimen with the high extrusion ratio (1600:1). There was a remarkable increase in tensile strength and 0.2% yield stress for the recycled specimen with the high extrusion ratio compared with an extrusion reference subjected to the same deformation history. Next, superior corrosion resistance of the recycled specimen was introduced. The recycled specimen with low extrusion ratio (45:1) possessed superior corrosion resistance compared with the extrusion reference. The enhancement of corrosion resistance for the recycled specimens was attributed to the presence of oxide contaminants which were distributed parallel to the extrusion direction.