The effect of ethylene-propylene-diene terpolymer (EPDM), dicumyl peroxide (DCP), and dimethyl silicone oil on the mechanical properties of high-density polyethylene (HDPE) composites filled with 60 mesh cryogenically scrap rubber powder (SRP) was studied. The addition of 10 wt % EPDM, 0.2 wt % DCP, and 4 wt % dimethyl silicone oil significantly increased both the impact strength and elongation at break of the HDPE/SRP composites. After the modification, the impact strength increased by 160%, and the elongation at break increased by 150% for the composites containing 40 wt % SRP. The impact load-time curves showed that the increase of impact energy for the modified composites was attributed to the increase of the maximum force at yield point and the ductile deformation after yielding. The rheological behavior, dynamic mechanical properties, and morphology observation suggested that an enhanced adhesion between SRP and polymer matrix formed in the modified HDPE/SRP composites. (C) 2003 Wiley Periodicals, Inc.