Eighty/twenty polypropylene (PP)/styreneethylene-butylene-styrene (SEBS) and 80/20 PP/maleated styrene-ethylene-butylene-styrene (SEBS-g-MA) blends reinforced with 30 wt % short glass fibers (SGFs) were prepared by extrusion and subsequent injection molding. The influence of the maleic anhydride (MA) functional group grafted to SEBS on the properties of SGF/SEBS/PP hybrid composites was studied. Tensile and impact tests showed that the SEBS-g-MA copolymer improved the yield strength and impact toughness of the hybrid composites. Extensive plastic deformation occurred at the matrix interface layer next to the fibers of the SGF/SEBS-g-MA/PP composites during impact testing. This was attributed to the MA functional group, which enhanced the adhesion between SEBS and SGR Differential scanning calorimetry measurements indicated that SEBS promoted the crystallization of PP spherulites by acting as active nucleation sites. However, the MA functional group grafted to SEBS retarded the crystallization of PP. Finally, polarized optical microscopy observations confirmed the absence of transcrystallinity at the glass-fiber surfaces of both SGF/SEBS/PP and SGF/SEBS-g-MA/PP hybrid composites.