A sheet manufacturing apparatus includes a sheet forming portion that forms a sheet using a material including fibers, a transport portion that transports the sheet, a cutting portion that cuts one edge portion and the other edge portion of the sheet positioned in a direction intersecting a transport direction of the sheet, a first coarse crushing portion that coarsely crushes a first surplus portion generated by cutting the one edge portion by the cutting portion, and a second coarse crushing portion that coarsely crushes a second surplus portion generated by cutting the other edge portion by the cutting portion.