The concentration of rare earth elements (lanthanum, cerium, and praseodymium) within rare earth polishing powder waste (REPPW) typically exceeds 50 %, with the majority of impurities comprised of silicon and aluminum-related compounds. Transforming REPPW into recycled rare earth polishing powders that adhere to polishing standards in an eco-friendly and economically viable way presents a significant challenge in the industry. Traditional acid or alkaline processes predominantly recover rare earth elements as oxides, which are underutilized due to their high costs. Considering the varying forms of impurities and rare earth compounds found in REPPW, this research introduces a novel physicochemical decontamination and continuous chemical transformation process aimed at producing regenerated rare earth polishing powders. Under optimal conditions, the physicochemical two-step decontamination process achieved a rare earth recovery rate surpassing 92 %, while silicon and aluminum removal rates reached 86.12 %. During the continuous chemical transformation of REPPW, the rare earth phases in an alkaline setting followed the sequence REOF (CeO2) → RE(OH)3 → RECO3OH→RECO3F→CeLa2O3F3(CeO2), which not only facilitated phase reorganization but also enhanced the particle surface structure. Notably, these chemical transformations did not disrupt the rare earth distribution; instead, they indirectly boosted product purity and uniformly dispersed within the regenerated polishing powder particles, thereby improving polishing efficiency. Consequently, the adoption of this innovative regeneration process for polishing powders holds substantial importance for the sustainable utilization of rare earth resources.