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You can compost it...

Yes, you can absolutely recycle shredded paper. If curbside, put it in a paper bag (not plastic) to keep it from blowing away. If still in doubt, check with your hauler.

Better yet -- if you have the space -- keep it and reuse it when sending packages. Better than styrofoam peanuts, and chances are the folks on the receiving end can recycle or reuse it, too!

When I worked as a recycling consultant to businesses about 4 years ago we told businesses you can recycle long strip shredded paper but you CAN'T recycle cross hatch paper shreds because the fibers are cut too small to be re-useable in the paper making process. We encouraged people to recycle the strips by putting them in paper bags.

i'll echo sillahee - i've been told the same by officials.

composting or using it as mulch are good options for cross-cut shredded paper.

I would check with your local recycling plant. Here in Vermont, the shredded paper is recyclable, but they only pick it up if it's in CLEAR PLASTIC bags.

I put it in paper bags and have never had any problem recycling but that will all vary by locale.

I wouldn't compost paper that is bleached white or has colored dyes.