Single treatment of metallised food packaging plastics waste (MFPW) has shown disappointing results with recycling rate <20 % due to its complex structure consisting of 10 % aluminium (Al) and 90 % mixed plastic films made of PE, PP, PS, PET, etc. Besides, it is generating many emissions and residues that must be landfilled making it difficult to integrate them into the circular economy. Therefore, a multi-stage recycling (MSR) approach has recently been developed using several sequential mechanical, thermal and chemical processes to recover energy and Al from MFPW with additional revenue for recycling plant operators. The thermal treatment helps to decompose the plastic fraction into wax or oil, gaseous, and solid residue (SR) composed of Al and coal, while the mechanical process can be used as a pre-treatment of MFPW feedstock and SR. Finally, the chemical treatment (leaching and functionalization) can be used to extract Al from SR and to refine coal into carbon microparticles (CPs), respectively. In order to investigate the environmental performance of the proposed MSR system, this research was developed. The investigation was performed using SimaPro life cycle analysis (LCA) tool according to ISO 14040/44 Standards and the impact assessment method is ReCiPe 2016. Five different scenarios were proposed in the constructed LCA layout, namely, conversion of MFPW to a) wax and gas (pyrolysis), b) wax, gas, and aluminium chloride (AlCl₃) (pyrolysis and leaching), c) wax, gas, AlCl₃, and CPs (pyrolysis, leaching, and functionalization), and d) oil, gas, AlCl₃, and CPs (catalytic pyrolysis, leaching, and functionalization). Besides, the oil produced from catalytic pyrolysis is used for generation of electricity (scenario e). The results showed that wax and gas recovery scenario (a) has better environmental potential and environmental benefits compared to incineration practice. The results did not change much after extraction of Al and CPs (scenario b, c), with a few increasing by 2–4% in the total score. While a lot of environmental burdens from upgrading and utilization (Scenario d, e) were recorded, reaching 79 % due to the huge amount of the catalyst was used. Thus, MSR systems have bigger environmental benefits, however, the chemical and catalytic processes still need to be further improved to reduce the effect of terrestrial acidification.