Improvement of mechanical properties of recycled mixed plastic waste is one of the fundamental goals in any recycling process. However, polymer immiscibility makes the development of any effective reprocessing method difficult. In this work, a polymer milling process with liquid CO2 was applied to polymeric mixed waste, obtaining a powder material which was successfully utilized as a matrix for a new composite material. Developed materials have interesting mechanical properties and material performance can easily be improved. Investigations on selected mixtures of PP and PE clearly showed evidence of chemical compatibilization.