The mechanical properties and fire resistance of a recycled poly(ethylene terephthalate) were improved by using a specific treatment of the waste material and the incorporation of encapsulated red phosphorus in combination with co-additives. The use of red phosphorus has to be limited due to a negative influence on impact resistance and rate of heat release. Among several metal oxides, Al2O3 acts as a good co-synergist at a total loading of 5 wt.% due to its reactivity, high specific surface area and aluminium phosphate formation. The complementary use of glass fibres can also generate intumescence by improving the mechanical stability of the char layer.