The study proposes utilisation of recycled PETG foils as a matrix for manufacturing of a composite reinforced with short PET fibres. With 70/30 wt-% filling ratio its notched impact strength of ∼12.8 kJ/m2 is twice higher than native PETG, 6-fold higher than the r-PETG and on the level of PP reinforced with the same content of glass fibres. Its good mechanical properties allow it to be applied as an engineering compound for injection moulded goods. The reuse of PETG foils as a matrix reinforced with inexpensive PET fibres gives a cost advantage and proposes a smart solution for recycling of problematic waste material. In order to be able to reprocess the r-PETG, the molecular weight of matrix material is restored during compounding by means of an efficient epoxy chain extender. A simple manufacturing method allows it to be implemented at plastic processing plants using standard machinery without additional installation costs.