The paper reports a study on the generation of viable metal additive manufacturing (AM) powders from AA5083 aluminium alloy scrap obtained from conventional milling process. This material recycling route involves multi-stage ball milling (BM) of raw chips using a planetary ball miller with varying ball-to-powder ratio (BPR: 10:1 and 15:1), ball diameter (5, 10, and 20 mm), RPM (150, 300, and 500), jar volume (100 and 250 ml) and BM time (30 and 60 min). The BM powders were characterised in terms of the particle size distribution, morphology, and phase analysis. Single-track melting of the produced BM powder was subsequently carried out using an in-house laser powder bed fusion (LPBF) system by varying energy density (Ed) (15–134 J/mm3). Quite expectedly, the height and width of the melted tracks increased with the increase in Ed. The study demonstrates that it is possible to produce BM powders that can be utilised for fabricating AM parts, however further research is imperative in order to achieve the desired size, shape and flowability of the BM powders that can be suitable for LPBF process.