Abstract: This study presents the findings from a study on the consumption of recycled materials and recycling practices in the plastics manufacturing industry and recycling companies in Malaysia. The findings were obtained from a survey conducted in twenty plastic manufacturing companies and detailed case studies in three recycling companies. The survey conducted in the plastic manufacturing companies’ shows that the consumption rate for poly-olefins (PP and PE) is the highest among the resin types and the industrial sector that consumes the most plastic materials is the electrical and electronics sector. The consumption of recycled materials is high among the local manufacturing companies (80%) which are largely due to cost savings; about 20% of these companies conducted in-house recycling. The study has also shown that the medium scale industry consumes the most recycled materials as compared to the large and small scale industry. The rate of disposal for plastic materials in the local industry is approximately 5%. The detailed case studies conducted in the recycling companies have successfully identified the main processes involved in plastic recycling namely manual sorting, cleaning, drying, meshing/pelletising and packaging. These recycling companies obtained recycled materials from various sources including industrial scrap, dumping sites, local producers as well as imported sources. Pricing of recycled materials were based on classification according to grade and quality of the recycled materials. The study has reflected the extent of in-house recycling trends in the local plastic manufacturing companies and their dependency on the supply from the local recycling companies.