A method of recycling a by-product generated in a papermaking process including, pulverizing a by-product produced in a papermaking process to prepare a pulverized product, burning the pulverized product to prepare a burned product, hydrating the burned product to prepare a hydrate; and manufacturing paper from the hydrate and a paper slurry is provided, which allows reuse of by-products generated in conventional papermaking processes such as lime mud and lime kiln CaO, which is environmentally friendly as well as cost-effective, and also the level of whiteness of the by-products such as lime mud and lime kiln CaO generated in a papermaking process can be improved to that of a high-grade raw material, making it possible to also improve the whiteness of paper.