The continuous urbanization of construction has led to an increasing demand for concrete, resulting in large-scale gravel and river sand mining, which seriously affect the sustainable development of the environment. The waste concrete produced by the demolition of old buildings is processed into recycled aggregate to replace natural aggregate, and then the preparation of recycled concrete can effectively alleviate this problem. This paper investigates the mechanical properties of steel fiber reinforced recycled concrete (SFRRAC) under compression shear conditions, a compression shear test with 99 cubic specimens was designed, with the variation parameters being recycled aggregate concrete replacement rate, compressive stress, and steel fiber content. The failure mode of SFRRAC under compression-shear stress was observed, and the shear force-displacement curve was calculated. Furthermore, a thorough examination was performed to assess the mechanical characteristics of SFRRAC specimens under compression-shear stress. The findings of this study suggest that as the compressive stress increases, the failure characteristics of the specimens shift from exhibiting brittle failure to displaying ductile failure. The shear strength is most sensitive to the change in compressive stress. When the compressive stress reaches 6 MPa, the shear strength can reach 3.41 times that of the direct shear specimen. The shear strength of SFRRAC specimens is composed of the bond strength of concrete, shear expansion strength, and friction shear strength. The incorporation of steel fibers can modify the distribution of shear strength among the individual components. The adverse effect of the recycled aggregate replacement rate on the toughness index of the specimen is mainly concentrated after the peak point. Nevertheless, an elevation in compressive stress and the inclusion of steel fibers can counterbalance this detrimental influence. The shear strength calculation formula of SFRRAC in shear state is put forward, which has a reference value. This study provides an experimental reference and a theoretical basis for further examination of SFRRAC.