A shredding and baling apparatus provided includes a shredding assembly operatively connected to a baling assembly via a conveyor. A rotatable drum with cutting teeth spirally arranged along the drum is preferably centered within a lower portion of an intake hopper for cutting through material as it is fed into the hopper. Fixed cutting teeth are preferably arranged in a row or rows along each of the longitudinal sidewalls of the hopper, adjacent the cutting drum. A touch screen display and computer may be used in combination with sensors to monitor and control the shredding and baling operation, and a hydraulic system is used to drive the components. The shredding and baling assembly is preferably designed in an industrial size to handle high volumes of material and may be driven or transported from one location to another.