The Mg–Sc alloy leach solution bearing 2.5 g/L Sc(III), 25.0 g/L Mg(II) and 0.5 M HCl was subjected to investigate for separation of Sc(III) by hollow fibre liquid membrane (HFLM) followed by its recovery through oxalate precipitation route. Ionic liquid (IL) R4ND derived from commercial organo-phosphoric acid (D2EHPA) and aliquot-336 was used as carrier in this study. Equilibrium study ensures on extraction of Sc(III) as ScCl3 with association of 3 mole of R4ND in the extracted phase. The role of chloride and R4ND concentration appears to be critical while enhancing the Sc flux (JSc). The complex formation during extraction of Sc(III) into the carrier phase was confirmed from FTIR analysis. Maximum JSc of 10.41 × 10−5 mol/m2.s was obtained at the optimum condition: pH 4.0, 0.4 M R4ND, flow rate 150 mL/min., 6.0 M NaOH, Feed: Strip = 3:1 and after 90 min. of HFLM continuous run of almost all scandium separation from scrap solution was achieved on yielding threefold enrichment into the strip phase which bears ~7.49 g/L of scandium. The stripped solution resulted was precipitated using oxalic acid and substantially calcined to produce Sc2O3. The pure form of Sc2O3 produced in the present work was ensured from XRD analysis.