Polypropylene/Polybutene-1 (PP/PB-1) blends and nanocomposites containing pristine partially reduced graphene oxide (rGO) and chemically functionalized rGO (FrGO) with silane, and silane grafted with 1,12-dodecanediamine and 1,12-dodecanediol were studied. The effects of the chemical treatments on structure and thermal stability of rGO were first thoroughly investigated. Attenuated total reflectance Fourier infrared (ATR-FTIR) spectroscopy analyses of FrGO evidenced the existence of functional groups on rGO after each chemical treatment, while X-ray diffraction (XRD) results confirmed the effectiveness of the interlayer grafting process through shifting of the basal spacings as witnessed by increased d(002) values. Furthermore, thermogravimetric analysis (TGA) revealed that the functionalization of rGO resulted in improved thermal stability of rGO demonstrated by its increased thermal degradation temperature. The PP/PB-1 blends and their rGO and FrGO based nanocomposites were prepared by melt blending masterbatch process in the presence of an acrylic acid modified polypropylene compatibilizer (PP-g-AA). Mechanical testing showed that Young's modulus and tensile strength of the PP/PB-1 blends significantly improved after co-addition of FrGO and PP-g-AA to form the nanocomposites, but it also endowed a drastic decrease in their elongation at break and especially in their impact strength. XRD analyses attested the successful formation of intercalated nanocomposites, and scanning electron microscopy (SEM) examinations disclosed a two-phase morphology consisting of PB-1 dispersed droplets in the PP matrix. SEM also indicated that the incorporation of PP-g-AA into the blends and the nanocomposites contributed to enhanced adhesion and dispersion of PB-1 phase and FrGO nanoparticles within the polymer matrix.