Polyamide (PA)1010 is blended with a saturated polyolefin elastomer, ethylene-cu-olefin copolymer (EOCP). To improve the compatibility of PA1010 with EOCP, different grafting rates of EOCP with maleic anhydride (MA) are used. The reaction between PA1010 and EOCP-g-MA during extrusion is verified through an extraction test. Mechanical properties, such as notched Izod impact strength, elongation at break, etc., are examined as a function of grafting rate and weight fraction of elastomer. It was found that in the scale of grafting rate (0.13-0.92 wt %), 0.51 wt % is an extreme point for several mechanical properties. Elastomer domains of PA1010/ EOCP-g-MA blends show a finer and more uniform dispersion in the matrix than that of PA1010/EOCP blends. For the same grafting rate, the average sizes of elastomer particles are almost independent on the contents of elastomer, but for different grafting rates, the particle sizes are decreased with increasing grafting rate. The copolymer formed during extrusion strengthens the interfacial adhesion and acts as an emulsifier to prevent the aggregation of elastomer in the process of blending.