In metal additive manufacturing, reusing collected powder from previous builds is a standard practice driven by the substantial cost of metal powder. This approach not only reduces material expenses but also contributes to sustainability by minimizing waste. Despite its benefits, powder reuse introduces challenges related to maintaining the structural integrity of the components, making it a critical area of ongoing research and innovation. The reuse process can significantly alter powder characteristics, including flowability, size distribution, and chemical composition, subsequently affecting the microstructures and mechanical properties of the final components. Achieving repeatable and consistent printing outcomes requires powder particles to maintain specific and consistent physical and chemical properties. Variations in powder characteristics can lead to inconsistencies in the microstructural features of printed components and the formation of process-induced defects, compromising the quality and reliability of the final products. Thus, optimizing the powder recovery and reuse methodology is essential to ensure that cost reduction and sustainability benefits do not compromise product quality and reliability. This study investigated the impact of powder reuse and particle size distribution on the microstructural and mechanical properties of Ti-6Al-4V specimens fabricated using a laser beam directed energy deposition technique. Detailed evaluations were conducted on reused powders with two different size distributions, which were compared with their virgin counterparts. Microstructural features and process-induced defects were examined using scanning electron microscopy and X-ray computed tomography. The findings reveal significant alterations in the elemental composition of reused powder, with distinct trends observed for small and large particles. Additionally, powder reuse substantially influenced the formation of process-induced defects and, consequently, the fatigue performance of the components.