Tensile yield behavior of the blends of polypropylene (PP) with ethylene-propylene-diene rubber (EPDM) is studied in blend composition range 0-40 wt % EPDM rubber. These blends were prepared in a laboratory internal mixer by simultaneous blending and dynamic vulcanization. Vulcanization was performed with dimethylol phenolic resin. For comparison, unvulcanized PP/EPDM blends were also prepared. In comparison to the unvulcanized blends, dynamically vulcanized blends showed higher yield stress and modulus. The increase of interfacial adhesion caused by production of three-dimensional network is considered to be the most important factor in the improvement. It permits the interaction of the stress concentrate zone developed at the rubber particles and causes shear yielding of the PP matrix. Systematic changes with varying blend composition were found in stress-strain behavior in the yield region, viz., in yield stress, yield strain, width of yield peak, and work of yield. Analysis of yield stress data on the basis of the various expressions of first power and two-thirds power laws of blend compositions dependence and the porosity model led to consistent results from all expression about the variation of stress concentration effect in both unvulcanized and vulcanized blend systems. Shapes and sizes of dispersed rubber phase (EPDM) domains at various blend compositions were studied by scanning electron microscopy.