New types of compatibilizers based on functionalized polypropylene (PP) were synthesized by radical melt grafting either with monomethyl itaconate or dimethyl itaconate. The effect of these new modified PP compounds were tested as compatibilizers in PP/polyethylene terephthalate (PET) blends. Blends with compositions 15/85 and 30/70 by weight of PP and PET were prepared in a single-screw extruder. Morphology of the compatibilized blends revealed a very fine and uniform dispersion of the PP phase as compared with that of noncompatibilized blends of the same composition, leading to improved adhesion between the two phases. Whereas dimethyl itaconate derived agent showed less activity, the monomethyl itaconate parent compound showed an increase of the impact resistance of PET in PP/PET blend. This was attributed to the hydrophilic nature of the monomethyl itaconate part of this compatibilizer. The tensile strength of PET in noncompatibilized blends gradually decreases as the PP content increases, while blends containing functionalized PP exhibited higher values.