Abstract A simple method with high efficiency for generating high pure hydrogen by hydrolysis in tap water of highly activated aluminum dross is established. Aluminum dross is activated by mechanically milling to particles of about 45μm. This leads to removal of surface layer of the aluminum particles and creation of a fresh chemically active metal surface. In contact with water the hydrolysis reaction takes place and hydrogen is released. In this process a Zero Waste concept is achieved because the other product of reaction is aluminum oxide hydroxide (AlOOH), which is nature-friendly and can be used to make high quality refractory or calcium aluminate cement. For comparison we also used pure aluminum powder and alkaline tap water solution (NaOH, KOH) at a ratio similar to that of aluminum dross content. The rates of hydrogen generated in hydrolysis reaction of pure aluminum and aluminum dross have been found to be similar. As a result of the experimental setup, a hydrogen generator was designed and assembled. Hydrogen volume generated by hydrolysis reaction was measured. The experimental results obtained reveal that aluminum dross could be economically recycled by hydrolysis process with achieving zero hazardous aluminum dross waste and hydrogen generation.