Various compositions of polypropylene (PP)/nylon-12 blends with elastomer were prepared. Morphologies and mechanical properties of the blends were studied. In particular, the effect of ethylene-propylene (EP) elastomer and maleic anhydride-grafted ethylene-propylene elastomer (Ma-g-EP) on the PP/nylon-12 blends were investigated. The results showed that PP/nylon-12 blends have inferior mechanical properties because of their poor compatibility and dispersion. The EP elastomer has a limited effect on the blends since the mechanical properties of PP/nylon-12 blends were controlled by their interface. The Ma-g-EP elastomer improved the mechanical properties of PP/nylon-12 blends through improvement of the interface between PP and nylon-12, and compatibility between the elastomer and nylon-12. Differential scanning calorimetry (DSC) and scanning electron microscopy (SEM) were used to characterize microstructures. The dispersion of components and the compatibility between PP and nylon-12 were significantly improved with addition of the Ma-g-EP elastomer.