A sheet manufacturing apparatus includes a coarse crushing portion that crushes a raw material containing a fiber into coarse crushed pieces, a defibrating portion that defibrates the coarse crushed pieces into a defibrated material, a sieve portion that includes a plurality of openings, a sheet forming portion that uses the defibrated material passing through the opening of the sieve portion to form a sheet, and a transport passage that transports the defibrated material, which has not passed through the opening of the sieve portion, between the coarse crushing portion and the defibrating portion.