Suspension graft copolymerization of methyl methacrylate and acrylonitrile onto ethylene-propylene-diene terpolymer (EPDM) was carried out under different reaction conditions. A series of graft products of EPDM-graft-methyl methacrylate and acrylonitrile (EPDM-g-MAN), characterized by Fourier-transform infrared spectroscopy, was blended separately with styrene-acrylonitrile (SAN) resin to investigate their toughening effect on SAN matrix. The relationship between the polarity of EPDM-g-MAN and toughness of EPDM-g-MAN/SAN resin blends (AEMS) was evaluated. The compatibility and morphologies of AEMS were probed by dynamic mechanical analysis, transmission electron microscopy, and scanning electron microscopy to determine the toughing mechanism of the blends. Thermogravimetry results showed that the thermal stability of AEMS was enhanced with the incorporation of EPDM-g-MAN graft copolymer.