Magnesium alloys are widely used in the aerospace, automotive and electronics industries due to their light weight, high strength, excellent heat resistance and electrical conductivity. However, the production and waste disposal of magnesium alloys have significant environmental impacts, especially the high energy consumption and environmental pollution of the primary magnesium extraction process. Therefore, the recycling of magnesium alloys has become a key way to achieve resource sustainability and environmental protection. This paper systematically reviews the latest research progress of magnesium alloy recycling technology, focusing on the analysis of the three traditional methods of physical recycling, chemical recycling and thermal recycling, and their advantages and disadvantages. Moreover, this paper also discusses new recycling technologies, such as gravity-driven multi-effect thermal system, molten salt electrolysis with liquid tin cathode, vacuum carbothermal reduction with polysilicon cutting waste, etc., which show significant advantages in terms of improving the recycling efficiency, reducing energy consumption and environmental impact. Through the comprehensive analysis of various recycling methods, this paper points out the future development direction of magnesium alloy recycling technology, including optimization of existing processes, development of environmentally friendly technologies, and promotion of cross-discipline cooperation, in order to achieve efficient recycling and sustainable development of magnesium alloy resources.