The invention discloses a polyethylene (PE) bottle scrap production process. The process includes the following steps that a packaging bag of recycled bagged plastic bottles is automatically opened through an unpackaging machine; the plastic bottles taken out of the bag are classified and sorted; the sorted PE plastic bottles are conveyed through a plate chain feeding machine to a subsequent crushing procedure so as to be crushed; PE plastic scraps obtained after crushing are conveyed into a rinsing machine to be rinsed; rinsed crushed PE plastic scraps are conveyed into a high-speed friction machine behind to be further processed and broken; then the PE plastic scraps are rinsed again and subjected to a dehydration procedure; dehydrated PE bottle scraps are separated and sorted according to the colors through a color separation machine; and the PE scraps different in colors are conveyed to different packaging machines correspondingly to be packaged and delivered into a warehouse so as to be stored. According to the PE bottle scrap production process, the whole production process is simple, manual operation is convenient, the labor intensity is low, thus, the production and cleaning time is shortened, the cleaning efficiency is improved, the cost is reduced, and the economic benefits are high.