A method of recycling a cholesteric liquid crystal is provided. The method includes providing a display medium material containing a micro-encapsulated cholesteric liquid crystal. The display medium material is mixed with a hydrophilic solvent to form a mixture having a temperature of between 70° C. and 100° C. Then, a hydrophobic solvent is added to mix with the hydrophilic solvent. The display medium material, the hydrophobic solvent and the hydrophilic solvent are mixed to form a mixture having a hydrophobic layer and a hydrophilic layer. The hydrophobic layer and the hydrophilic layer of the mixture are separated, wherein the hydrophobic layer contains a cholesteric liquid crystal and the hydrophobic solvent. Then, the hydrophobic solvent is removed from the hydrophobic layer to obtain the cholesteric liquid crystal.