Reactive extruded recycled PET (RER-PET) was blended with virgin PET in order to find optimum composition for producing bottles using injection stretch blow moulding (ISBM) process. Two variables were investigated namely, RER-PET concentration in the blend with virgin PET and RER-PET intrinsic viscosity, [η]. The variability of [η] was facilitated by changing PMDA chain extender concentration in the production of RER-PET. Different molecular, mechanical, barrier and optical tests such as infrared, burst pressure, top load strength, drop impact, environmental stress cracking, liquid permeation, gas permeation, and clarity were conducted. The aim was to evaluate the properties of the bottles in response to different blends compositions. Bottles made from RER-PET and virgin PET blends showed similar and better mechanical and barrier properties at certain compositions to those made from Virgin PET. The effects of RER-PET molecular properties such as intrinsic viscosity, chain orientation and conformation on bottles mechanical, barrier and optical properties are detailed.