Regarding the current demand for controlling plastic pollution, recycling of polymer sounds a promising solution. However, recycling causes mechanical and thermal shortcomings in polymers. Addition of nanoparticles to recycled materials may overcome these shortcomings. Nanocomposites can be achieved either by blending or through polymerization. Sepiolite as a nanoparticle enhances the thermal properties of polymers. In this study, the effect of sepiolite as a nanoparticle has been investigated on the thermal and mechanical behavior of recycled high-density polyethylene (HDPE). Hardness, density, Vicat softening temperature, melt flow rate (MFR), and differential scanning calorimetry has been investigated on recycled HDPE containing different amount of sepiolite. Results showed that both the amount of recycled HDPE and the sepiolite content affect the mechanical and thermal behavior of samples. Increasing the amount of recycled component resulted in increasing of MFR, a slight increase in density, and decrease in Vicat softening point, hardness, melting temperature, and degree of crystallization. As an opposite effect of these to factors on crystallinity of HDPE, sepiolite content has better effects to be considered separately for each recycle content. Sepiolite can be introduced as a low-cost reinforcement filler in recycling industry for tuning new compositions based on process condition, or vice versa.