Magnesium nanocomposites with improved mechanical and tribological properties have attracted widespread interest in the automotive sector. Given the great potential of magnesium nanocomposites in the automotive sector and the need for recycling materials to minimize their negative impact on the environment, it is imperative to consider the possibility of a practical approach to recycling these materials. In this study, turning induced deformation (TID) technique is used to recycle the magnesium composites containing iron oxide (Fe3O4) nanoparticles. The chips collected from the turning process of composites were cold compacted and hot extruded into cylindrical rods. The extruded materials were investigated for their tribological response under dry sliding conditions. The wear tests were performed using a pin on disc tribometer against an EN31 alloy steel counter disc under applied loads of 10, 20, 30, and 50 N and sliding speeds of 1, 2, 3, and 5 m/s. The worn pin surfaces were examined under scanning electron microscopy integrated with an energy dispersive x-ray spectrometer to understand wear characteristics. The results revealed a better wear resistance and friction coefficient for recycled nanocomposites than pure magnesium. The enhanced wear resistance of recycled nanocomposites is attributed to the increased hardness and strength due to the Fe3O4 nanoparticles and the turning induced deformation process. The wear surfaces revealed abrasion and delamination as the predominant wear mechanism, with thermal softening occurring only at the highest applied load and sliding speed.