Recently, a dynamic increase in the number of polymer elements ending their life cycle has been observed. There are three main ways of dealing with polymer waste: reuse in an unchanged form, recycling (both material and energy), and disposal (mainly in the form of landfilling or incineration). The legislation of European countries promotes in particular two forms of waste management: reuse and recycling. Recycling processes are used to recover materials and energy especially from contaminated waste, which are structurally changed by other materials, friction, temperature, machine, process, etc. The recycling of polymers, especially of multi-plastic structural elements, requires the use of special technological installations and a series of preparatory operations, including crushing and separating. Due to the universality and necessity of materials processing in recycling engineering, in particular size reduction, the aim of this study is to organize and systematize knowledge about shredding in the recycling process of end-of-life polymeric materials. This could help properly design these processes in the context of sustainable development and circular economy. Firstly, an overview of the possibilities of end-of-life plastics management was made, and the meaning of shredding in the end-of-life pathways was described. Then, the development of comminution in recycling processes was presented, with special emphasis given to quasi-cutting as the dominant mode of comminution of polymeric materials. The phenomenon of quasi-cutting, as well as factors related to the material, the operation of the shredding machine, and the technological process affecting it were described. Research conducted on quasi-cutting as a phenomenon when cutting single material samples and quasi-cutting as a machine process was characterized. Then, issues regarding recycling potentials in the context of shredding were systematized. Considerations included the areas of material, technical, energy, human, and control potentials. Presented bases and models can be used to support the innovation of creative activities, i.e., environmentally friendly actions, that produce specific positive environmental results in the mechanical processing of recycled and reused materials. The literature survey indicates the need to explore the environmental aspect of the shredding process in recycling and connect the shredding process variables with environmental consequences. This will help to design and control the processes to get the lowest possible environmental burdens.