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Two-layered surface materials composed of a thermoplastic olefin elastomer (TPO) skin and a cross-linked polypropylene (PP)foam are increasingly replacing the conventional PVC skin/PVC foam for interior trims. In the past, recycled material obtained by melt-blending TPO skin and PP foam could not be re-used for TPO skin because of its appearance. A new recycling technology using the reaction biaxial extruder with a reaction agent can decompose the network structure of PP foam. As a result, PP foam is dispersed into TPO uniformly and the recycled material has properties and an appearance similar to virgin TPO. These new properties may allow the application of the recycled material as a surface material.