This research work is inspired by the 3Rs: Reduce; Reuse and Recycle enabling the fabrication of green and clean metal matrix composites. In addition to the environmental benefits, recycling of industrial waste produced by metal machining industry have significant financial advantages. Consequently, the present study aimed to explore suitability of the waste chips produced during turning and grinding operations of mild steel for the fabrication of metal-matrix composite (MMCs) through powder metallurgy (P/M) route have been exhibited. Field emission electron microscopy (FESEM) and Energy-dispersive X-ray spectroscopy (EDS) have been used to evaluate morphology and composition of starting materials Flowability and compressibility of the starting materials have been explored using the Hausner’s ratio and Carr’s index respectively. The apparent and tapped densities of the mild steel turning chips (MSTCs) 1.88 and 2.17 g/cc. Further in case of steel grinding chips (SGCs) densities were found to be 1.92 and 2.12 g/cc respectively. On the other hand, the on addition of SGCs(0–30 wt%) to the MSTCs the flowability observed to be retarded a bit. Based on the initial investigations it can be concluded that the waste MSTCs and SGC can suitably be processed through P/M to fabricate sustainable MMCs.