PurposeIt has been observed from the history of failed dies used in local extrusion industry that after certain press cycles, severe die damage occurs by using more number of in‐house recycled billets. The purpose of this paper is to focus on the effect of billet quality on the extrusion die service life, based on using microstructural and finite element analyses.Design/methodology/approachNumerical solution of stress distribution in extrusion die using microstructural and finite element analyses.FindingsSimulation results demonstrate that extrusion die experiences high stresses and strains at critical locations by running secondary billets. Billet deformation behavior also shows that secondary billet has more resistance to flow during extrusion cycle, which results in such high stresses and strains in the die.Research limitations/implicationsThe study includes a particular die used to extrude the aluminum alloy billets. It may need to generalized including materials other than aluminum alloy.Practical implicationsThe findings are original and believed to be useful for engineers working in the extrusion dies. Since it is shown that secondary billets (recycled billets) have more resistance to flow in the dye, a care should be taken when estimating the die life for the practical applications.Originality/valueIt is an original work. It deals with the comparison of new and recycled billets's performance in terms of stress formation in the die during the extrusion cycle.