Abstract: A dryer densifier includes a hopper for receiving wet, dry and/or flaky thermoplastic waste material. The hopper feeds an auger barrel which is heated and insulated whereby material passing therethrough may be dried and fused together with other material. The auger barrel and screw are configured to leave sufficient space therebetween whereby heated vapors may pass along the length of the auger and exit to the atmosphere at the discharge end, and whereby the heated vapor may be collected by a vapor collecting hood. The material is discharged from the auger onto a shaker screen table where the fused and unfused materials are separated by the vibrating screen conveyor of the table. The unfused material is returned to the receiving hopper for further densification and the fused material is conveyed to a granulator, whereupon the dried and densified material is granulated.