EXHIBIT 5


                                                 November 1, 1996


APPLIANCE RECYCLING CENTERS OF AMERICA, INC.
7400 Excelsior Boulevard
Minneapolis, MN 55426

         Re:  Registration Statement on Form S-3

Ladies and Gentlemen:

         We have acted as counsel for Appliance Recycling Centers of America,
Inc., a Minnesota corporation (the "Company"), in connection with the
preparation of the above-referenced registration statement (the "Registration
Statement"), relating to the proposed offering from time to time under Rule 415
of up to 319,355 shares of the Company's common stock, without par value (the
"Shares"), to be sold for the account of certain selling shareholders.

         As such counsel, we have examined and are familiar with such documents
and corporate records of the Company as we have deemed necessary and appropriate
for the purpose of rendering this opinion.

         Based upon the foregoing, we are of the opinion that the Shares have
been duly authorized, validly issued, fully paid, and nonassessable.

         We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement and the reference to our firm under the caption "Legal
Matters" included in the Prospectus contained within the Registration
Statement.
                                    Very truly yours,

                                    MACKALL, CROUNSE & MOORE,PLC