Abstract: Magnetic powder and substrate material are separately recovered from finely chopped wastes of magnetic recording media consisting of a polymeric substrate and a magnetic layer present thereon in which finely divided magnetic powder is dispersed in crosslinked or uncrosslinked polymeric binder by treating the finely chopped wastes of magnetic recording media in a solution consisting of the potassium salt of a polyunsaturated fatty acid, or a biodegradable cleaning agent comprising phosphates, surfactants and a complexing agent, and one or more organic solvents or water while being subjected to mechanical action, and separately removing the magnetic powder from the substrate material by washing or sedimentation or in a magnetic separator.