Potential of using powder coating recyclates as filler material for polyethylene compounds was investigated. Due to their strong adhesion to the metal surface during compounding at extrusion temperatures higher than 100°C, the coating powder recyclates were chemically modified to facilitate its processing by extrusion and injection molding at higher temperatures. For this purpose, the coating powder recyclates were first hydrolyzed with addition of an alcohol as swelling agent. The deactivated recyclates were mixed at different ratios with the matrix polymer, a linear low-density polyethylene (LLDPE). The mixtures obtained were then compounded by extrusion and subsequently injection molded to plates to produce specimens for testing. The resulting samples were characterized mechanically by tensile, bending, and impact strength tests. In summary, the powder coatings recyclates can be processed as filler for thermoplastic material, without any adhesion problems up to 160°C and 180°C in the extruder and in the injection molding machine, respectively.