A method and system reprocess soiled animal bedding material commingled with animal manure. In one aspect the soiled animal bedding material is separated in a shaker to send at least a preponderance of the manure to a holding tank. In another aspect the bedding is cleaned, rinsed and color is restored. The bedding material is subsequently dried and a bedding product, fertilizer product, and/or compacted product is formed. Alternatively, the bedding material is dried (without a compacting step) to form a product. In yet another aspect, the steps of separation, cleaning, rinsing and/or color restoration may be omitted.