Abstract: High-performance carbon fiber reinforced epoxy composites have become important materials for aircraft manufacturing due to their excellent mechanical and thermal properties. The three-dimensional crosslinked network of epoxy matrix is insoluble, making degrading and recycling challenging. In engineering, to reclaim the expensive carbon fiber from composite wastes, harsh conditions such as high temperature (300-800℃), high pressure (3-27 MPa), and trenchant catalyst are usually demanded to destroy the epoxy matrix. However, the properties of carbon fibers are deteriorated simultaneously. In this work, high-performance epoxy resin was decomposed into oligomers via the bond exchange reactions between the epoxy and alcohol solvent. The epoxy resin was dissolved in the alcohol solvent at mild condition (200℃, 0 MPa). Meanwhile, the woven structure of the recycled fabric remains intact, and its tensile strength is 94% of the fresh fabric. Thereby, the recycled fabrics can be used to prepare new composites. Furthermore, the decomposed epoxy oligomer (DEO) is used as a reactant to prepare new epoxy resin. When the DEO content is 20wt%, the elongation at break of the new resin is significantly improved by 20%, while its strength is similar to the original epoxy resin. For the same DEO content, the elongation at break of re-manufactured epoxy composites increased by 50%, compared to the fresh one. To sum up, we develop a closed-loop recycling and re-manufacturing method for an epoxy resin and its composite, and a novel method for the toughening of epoxy resin that is eco-friendly, easy and efficient.