The effect of compatibilization on the morphology, mechanical properties, and dynamic mechanical properties of isotactic polypropylene (IPP)/nylon-6 (Ny-6) binary blends was investigated. Maleic anhydride (MAH) functionalized IPP was used as a compatibilizer in binary blends. The morphological, mechanical, and dynamic mechanical properties of binary and ternary blends were compared. The blends containing IPP-g-MAH showed more regular and finer dispersion of phases, different dynamic properties, and improved mechanical properties due to better adhesion between the two phases. The blends were also characterized for their flow properties and extent of water absorption. The melting peak temperature and percent crystallinity of IPP and Ny-6 phases were decreased in compatibilized blends.