Polypropylene (PP) and acrylonitrile-butadiene-styrene blends of different composition were prepared using a single-screw extruder. The binary blend of PP/ABS was observed to be incompatible and shows poor mechanical properties. PP-g-2-hydroxyethyl methacrylate (2-HEMA) was used as a compatibilizer for the PP/ABS blends. The ternary compatibilized blends of PP/ABS/PPg-2-HEMA showed improvement in the mechanical properties. Electron micrographs of these blends showed a homogeneous and finer distribution of the dispersed phase. The mechanical performance increased particularly in the PP-rich blend. The 2.5-phr (part per hundred of resin) compatibilizer was observed to bring improvement to the properties. The suitability of various existing theoretical models for the predication of the tensile moduli of these blends was examined. (C) 2003 Wiley Periodicals, Inc.