A paper recycling device includes a dry type defibrator, a first transport unit, a classifier unit, a second transport unit a paper forming unit and a control unit. The dry type defibrator unit is configured to defibrate first paper into defibrated material. The first transport unit is configured to transport the defibrated material after being defibrated by the dry type defibrator unit. The classifier unit is configured to classify by an air flow classification the defibrated material after being transported by the first transport unit. The second transport unit is configured to transport the defibrated material after being classified by the classifier unit. The paper forming unit is configured to for second paper with the defibrated material after being transported by the second transport unit. The control unit is configured to control volume of the first paper supplied to the dry type defibrator unit.