The present invention provides improved systems for plastic recycling. In a first embodiment for recycling HDPE milk jugs, a cold water wash step is used to remove bacteria-generated odor from milk jugs. In a second embodiment, a system for recovering PET and HDPE from soda bottles is disclosed. The separation stage utilizes a three-compartment sump to separate HDPE using water as the medium, and two further stages using heavier media for separation of PVC cap liners and aluminum from the PET.