In this study the optimum parameters affecting the preparation of aluminum foam from recycled aluminum were studied, these parameters are: temperature, CaCO3 to aluminum scrap wt. ratio as foaming agent, Al2O3 to aluminum scrap wt. ratio as thickening agent, and stirring time. The results show that, the optimum parameters are the temperature ranged from 800 to 850oC, CaCO3 to aluminum scrap wt. ratio was 5%, Al2O3 to aluminum scrap wt. ratio was 3% and stirring time was 45 second with stirring speed 1200 rpm. The produced foam apparent densities ranged from 0.40-0.60 g/cm3. The microstructure of aluminum foam was examined by using SEM, EDX and XRD, the results show that, the aluminum pores were uniformly distributed along the all matrices and the cell walls covered by thin oxide film.