In this study, severe plastic deformation of 7075 aluminum alloy was investigated using a new method, based on the combination of conventional upsetting and direct extrusion. In this process, which is called repetitive upsetting-extrusion, cylindrical samples were first subjected to upsetting and were subsequently subjected to extrusion at 250 °C with various processing cycles. Die design was carried out considering the possibility of conducting both upsetting and extrusion by using a single die and the maximum of four RUE cycles were successfully performed on the samples. Finite element method was used to simulate the deformation behavior of 7075 alloy during repetitive upsetting-extrusion processing and the strain distribution was obtained for the deformed samples. The finite element simulation results correlated fairly well with the microstructural observations. Based on the simulation results, the maximum effective strain was observed at the central region of the samples. The deformation behavior and the flow pattern were discussed based on the experimental and the simulation results. In addition, the effect of applied strain on mechanical properties of processed samples was studied. Tensile strength and elongation of deformed samples increased with extending the number of repetitive upsetting-extrusion cycles.