AA6061/Al alloy chips of different size and fly ash particles have been recycled using the solid state process. The effect of chip size and fly ash content on the microstructure, mechanical and wear properties of the recycled AA6061/Al two phase composites were investigated. Microstructural characterization revealed a uniform distribution of fly ash particles in recycled composites with fine chips and a good interface between fly ash particulates and AA6061/Al two phase matrixes. According to mechanical and wear results, the incorporation of fly ash particles in the AA6061/Al two phase matrix caused reasonable increase in hardness, compressive strength, and wear resistance. On the recycled composites fine chips, the destructive action of the steel ball was very limited compared to that of the Al2O3 ball.