Compatibilization of PPO/Nylon66/TPE blends was investigated by morphological, thermal, mechanical analysis. EPR was functionalized with maleic anhydride using benzoyl peroxide as an initiator. PPO was functionalized with maleic anhydride without initiator. Maleated EPR ( EPR-g-MAH ) was prepared by solution grafting and maleated PPO was prepared by reactive extrusion in the intermesh corotating twin screw extruder. Melt blends of PPO/Nylon66/TPE were prepared using the intermesh counter-rotating twin screw extruder. The morphology and properties of blends were influenced by the amount of grafted MAH in the blends. Tensile strength and impact strength of blends increased with increasing the amount of compatibilizer and TPE. Uniformity of the dispersed phase, the domain size and interface adhesion also affected the strength and properties.