In this study, the concept of novel recycling system using waste Al and Fe is described. Taking advantage of the fact that due to its cyclic usage, aluminum scrap unavoidably contains iron and steel wastes, an in-situ Al-Al 3 Fe functionally graded material (FGM) is planned to be fabricated. A centrifugal method is applied to a model master alloy, Al-10 mass% Fe, obtained from virgin materials, the content of which is decided from the liquidus temperature. The resulting product is a thick-walled tube having a graded distribution of second phase particles in the Al matrix. It has been established that the shape of the particles varies depending on their position along the radial direction. The second phase is confirmed to be a stable Al 3 Fe intermetallic compound. Thin plates of Al-Al 3 Fe having homogeneously distributed Al 3 Fe particles, considering both the composition gradient and the particle morphology, were machined from the thick-walled Al-Al 3 Fe FGM tube and their mechanical properties measured. Based on the experimental observations, the potential and the advantages of the Al-Al 3 Fe alloy as a recyclable eco-FGM are discussed.