The stainless steel/iron chips core cladding bar was hot-rolled by using recycling iron scrap. The interface of the metals and the influence of rolling pass, rolling temperature, graphite additive on properties of stainless steel/iron chips core cladding bar were analyzed by optical microscope, SEM, EDS and micro hardness tester. The experimental results show that element diffusion occurs at the interface after six passes rolling and the width of diffusion zone is about 70-80μm. The Fe of carbon steel diffuses into stainless steel and the Cr, Ni, Mn of stainless steel diffuse into carbon steel which makes micro hardness of carbon steel near the interface increase obviously. The bonding strength between stainless steel and iron chips core increases with increasing of rolling passes and it is 355MPa after six passes rolling. The tensile strength and elongation of the cladding bar increase with increasing of rolling temperature and they are 470MPa and 32% at 1150℃, 500MPa and 35% at 1250℃. The composition of iron chips core is improved by adding graphite powder. With the increasing of the graphite in iron chips, the tensile strength of cladding bar increase, but decrease for elongation. White reticular secondary cementite is appearing when the graphite is 1. 0% and the tensile strength is up to 736. 5MPa, the elongation decrease to 16%. The tensile fracture shows brittle fracture morphology.