The 2D scrape-off-layer turbulence code (nSOLT), which includes 1D kinetic neutral–plasma interactions, is applied to study effects of neutral recycling on plasma turbulence for parameters illustrative of the MAST-U divertor region. Neutral recycling is modeled by injecting a fraction of the parallel plasma flux to the divertor back into the simulation domain as a source of Franck–Condon-distributed neutrals. Stationary sources, concentrated at the magnetic separatrix, model plasma streaming into the divertor region from the upstream scrape-off-layer and sustain plasma turbulence absent neutral recycling. Starting from one such no-neutrals equilibrium, we initiate recycling in a numerical experiment designed to diagnose and identify the effects of various neutral–plasma interactions on the divertor plasma, divertor turbulence, and plasma exhaust. The onset of recycling triggers an initial burst of enhanced cross field plasma transport that is quelled by ionization cooling and charge–exchange (CX) friction, with growing neutral pressure, leading to a quiescent, turbulence-free state. Diagnosis of this transient burst reveals that (1) the sudden increase in plasma density due to ionization dominates the onset of the burst, (2) electron cooling due to ionization increases collisionality and disconnects blob filaments from the sheath, and (3) CX friction drives tripole polarization of a blob that can dominate the curvature-driven dipole polarization, leading to the stagnation of blob propagation and reduced radial turbulent transport. It is shown that CX friction is negligible compared to sheath physics in determining equilibrium mean flow shearing rates, for parameters considered herein (specifically a short connection length to the divertor target), while it can significantly reduce interchange-instability growth rates.