A novel method to separate silicon and silicon carbide from kerf loss slurry by Al–Si alloying process has been reported in this paper. The kerf loss slurry was washed and dried, and then aluminum was added on the top of these dry powders with silicon and silicon carbide. The Al–Si alloying process was performed in argon atmosphere using a vacuum carbon tube furnace at 1773K. In this way, an Al–Si ingot was obtained, on the surface of which a lot of hexagonal crystals were observed. The Al–Si ingot was characterized by X-ray diffraction, scanning electron microscopy, X-ray fluorescence and electron probe micro-analyzer. The X-ray results indicated that the Al4C3 phase was obtained on the top of the cast. The scanning electron microscopy, X-ray diffraction and electron probe micro-analyzer results revealed that the Al–Si alloy without silicon carbide phase formed in the cast, which indicated that silicon and silicon carbide can be separated from slurry by this alloying process.