A process and system reprocesses soiled animal bedding material commingled with animal manure. The material is to remove a preponderance of the manure. The remaining soiled bedding is washed in water and a cleaning agent, rinsed and, optionally, bleached to restore color and appearance. The resulting material is dewatered and dried to reduce its moisture content and kill any remaining pathogens. After being cleaned and sanitized, the material may be reused as bedding or further processed into pellets or other products, such as manufactured fire logs.