Different grades of oil resistant thermoplastic elastomers (TPE) based on blends of nitrile rubber (NBR) and high density polyethylene (HDPE) have been developed. Chemical treatment of HDPE to evolve compatibility with NBR and dynamic vulcanization with different curatives have been studied. Determination of physico-mechanical and thermal properties and relative crystallinity of these blends have been carried out. Oil resistance characteristics of the blends have been evaluated in different commercially used oils and fuels for applications as a substitute for NBR/polyvinyl chloride (PVC) blends.