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A new material recycling technology for crosslinked rubber was developed using the continuous reactive processing method. In this process of producing reclaimed rubber, breakage of crosslinking points in the crosslinked rubber occurs selectively under the controls of shear stress, reaction temperature, and internal pressure in a modular screw type reactor. Deodorization during the process has also become possible by a newly developed method. The reclaimed rubber obtained from rubber waste generated from both automobile manufacturing products and post-consumer products shows excellent mechanical properties applicable to new rubber compounds. Furthermore, an enhanced rubber recycling process for producing thermoplastic elastomer (TPE) based on rubber waste has been established. The obtained TPE exhibits highly recoverable rubber elasticity and mechanical properties comparable to commercial TPE.