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If the user consumes its held item, for example a Berry, then Recycle will restore that item. The memory of the item consumed is stored, so switching out does not affect the ability to restore a held item. Recycle can restore an item lost by Fling or Natural Gift. Recycle fails if the user was not holding an item, if the item was a popped Air Balloon, or if the item was lost to Bug Bite, Covet, Incinerate, Knock Off, Pluck, or Thief. It will also fail to restore an item collected by Pickup. If a Pokemon gains an item through one of the above moves, by taking it from another Pokemon, then they themselves can restore that item using Recycle.
Only one recycled item can be stored at any time. If a Pokemon consumes one item, then takes another and consumes it, the first item cannot be restored by any means. However, if a Pokemon consumes one item, then takes another but does not consume it, then loses that item and uses Recycle, it will restore the first item.
Recycle is an interesting move that has potential uses with single-use items, such as a Berry or Focus Sash. However, this move has low distribution, and the use of the move is usually nothing more than a gimmick in most situations.