The effect of recycled PP on incompatible blends of virgin polypropylene (PP) and high-density polyethylene (HDPE) was studied. Recycled PP from urban solid waste was extracted with methyl ethyl ketone and the compatibilizing action of the product before and after extraction was examined. The characterization of the recycled PP was performed by FTIR, NMR, and DSC analyses. Mechanical properties of the blends were evaluated. The results showed partial compatibility of the blend components, reflected in the improvement of the tensile strength and elongation. Best results were achieved by the addition of extracted recycled PP on the 50/50 PP/HDPE blends.