A study of the melt-theological behavior of thermoplastic elastomers from high-density polyethylene and acrylonitrile butadiene rubber (NBR) blends was carried out in a capillary rheometer. The effect of the blend ratio and shear rate on the melt viscosity reveals that the viscosity decreases with the shear rate but increases with NBR content. Compatibilization by maleic anhydride modified polyethylene has no significant effect on the blend viscosity, but a finer dispersion of the rubber is obtained, as is evident from scanning electron micrographs. The melt-elasticity parameters, such as the die swell, principal normal stress difference, recoverable shear strain, and elastic shear modulus of the blends, were also evaluated. The effect of annealing on the morphology of the extrudate reveals that annealing in the extruder barrel results in the coalescence of rubber particles in the case of the incompatible blends, whereas the tendency toward agglomeration is somewhat suppressed in the compatibilized blends.