Up to date, a reasonable and adequate process to treat magnesium scraps in die casting factory is not yet achieved, especially for middle or small scale die casters. Actually, many existing methods of handling magnesium scraps have met the level of technology for practical utilization requirement. Now, what we have to do is to propose a systematic handling process according to factory suitability and cost consideration. In this paper, the classification of magnesium scraps will be introduced first. Then the complementary storage methods and treatment methods for each type of scraps and recycle policy for die casters will be discussed. Finally, we propose a management model of magnesium scraps that is possibly suitable to some die casting factories.