Polypropylene (PP) and acrylonitrile-butadiene-styrene (ABS) blends were prepared by a melt extrusion process. PP-g-acrylic acid was used as a compatibilizer. Blends with various compositions of PP, compatibilizer, and ABS were prepared and studied for morphological and mechanical properties. PP-rich ternary blends showed good morphological and mechanical properties. The use of 5 wt % PP-g-acrylic acid as a compatibilizer resulted in a fine and homogeneous dispersion of the ABS phase in the PP phase. The experimental data of the tensile modulus showed good agreement in PP-rich compositions with that generated from Kerner's model with perfect adhesion.