Waste ground rubber tire (WGRT) is a complex composite containing various elastomers, carbon black, zinc oxide, stearic acid, processing oils, and other curatives. Most of the waste ground rubber tire is composed of mainly natural rubber (NR) and styrene butadiene rubber (SBR) in varying proportions. Blending it with other thermoplastic materials is difficult due to the inherent thermodynamic incompatibility. But, the compatibility can be increased by making the reactive sites in WGRT with suitable chemicals under optimum condition of shearing inside a twin screw extruder and it is said to undergo a dynamic reaction inside the extruder. To understand the mechanism of dynamic reaction process of a rubber/polyolefin blend, the blending of a truck tire model material rubber with polyolefin was first tried before it was applied to waste WGRT material. It was observed that the blends of a truck tire model rubber material and PP thermoplastic are physical mixture of two incompatible polymers in which a continuous plastic phase is largely responsible for the tensile properties. The rubber particles are the dispersed phase. The large particle size and the poor adhesion of these rubber particles are believed to be liable for the poor tensile properties. In case of blends of truck tire model material with isotactic polypropylene the tensile properties are found to be lower than that of its PP-g-MA counterpart which can be attributed to the reaction of the MA with the carbon black particles. A schematic representation of the possible interactions has been proposed. The effect of addition of compatibilizers such as SEBS and SEBS-g-MA has also been studied. The tensile and TGA studies indicate that the polarity of SEBS and SEBS-g-MA induces an increase in the performance characteristics for both types of polyolefins but the intensity of this increase is higher in the PP-g-MA based blends. (c) 2007 Wiley Periodicals, Inc.