This paper describes developments in the understanding of the effect of fibre alignment on the properties of composites made from discontinuous recycled carbon fibre and describes developments in a hydrodynamic method for achieving fibre alignment. Carbon fibre recycled from shredded end-of-life composites is usually short, filamentised and randomly orientated. This imposes a challenge in reusing the fibre within the composite community as the mechanical performance of a composite is significantly affected by the reinforced fibre length, volume fraction and orientation. Hydrodynamic processing can be used to achieve alignment of discontinuous fibres to allow a higher fibre volume fraction to be obtained, providing the opportunity for higher grade applications for the recycled fibre. A design of experiments is employed to analyse the factors and interactions that have a significant effect on the fibre alignment quality. The degree of fibre alignment was quantified and the relation between compaction pressure and fibre volume fraction will be described.