Multi-layer films are one of the most challenging classes of polymer waste for recycling, as they consist of a mixture of constituent materials like polyethylene (PE), polyamide 6 (PA6), and ethylene vinyl alcohol (EVOH). This study investigates the characterization, washing, and mechanical properties of recycled blends derived from such multi-layer films. Raman spectroscopy and Differential Scanning Calorimetry (DSC) were used to characterize the individual components in single- and multi-layer films, and distinct properties of LDPE, LLDPE, PA6, and EVOH were observed. Mechanical properties enhanced by proper shredding, washing procedures, and multiple combinations of polyethylene blends were investigated to optimize the mechanical characteristics of the recycled materials, especially strain at break. Additionally, the shrinkage behavior of the recycled films was compared to commercial shrink films, demonstrating their potential for use in industry packaging applications. These results highlight a more sustainable possibility for multi-layer packaging applications.