Smart powder processing stands for novel powder processing techniques that create advanced materials with minimal energy consumption and environmental impacts. This process is also important from the viewpoint of sustainability. Particle bonding technology is a typical smart powder processing technique to make advanced composites. In this paper, its application examples for clean energy, energy-saving and novel recycling will be explained. For clean energy issues, the role of microstructure control of the electrodes for higher performance of Solid Oxide Fuel Cell (SOFC) by using particle bonding will be explained. From the viewpoint of energy-saving, a new method to produce fiber reinforced fumed silica compacts by making use of particle bonding will be introduced. It will be explained that the compacts have very low thermal conductivity with high porosity at high temperature. Furthermore, by carefully controlling the bonding between different kinds of materials, effective separation of elemental components can be achieved. It leads to the development of a novel technique for recycling advanced composite materials and turns them to high-functional applications. In this paper, its application for recycling of glass fiber reinforced plastics (FRP) will be explained.