Sustainability of plastic packaging has a significant importance in reducing the environmental impacts of plastic materials. Among different approaches, mechanical recycling of plastic materials is the best complying method with circular economy that allows reducing plastic waste at a lower cost. However, processing of recycled plastic materials is still challenging due to the presence of multiple polymer materials, inks, adhesives and fibers in the recycled plastics. As a result, the final products from recycled plastic materials have poor visual and/or mechanical properties. In this work, multilayer high barrier flexible films containing major PE phase and minor PA and PET phases were mechanically recycled and used in a new multilayer film structure using film blowing process. The composition of phases was selected similar to the one used in common high barrier multilayer film packaging. The effects of processing conditions, the addition of stabilizer and compatibilizer on optical and mechanical properties, as well as morphology of the samples were investigated in detail.