PP/PE 93/7 model virgin blends and recycled scraps were compatibilized with Royalene (ODM/PE 65/35 blend) and mechanically tested. No differences in impact and tensile properties between them were found. However, the tensile-impact strength increased almost twice with 10%-compatibilized sample in comparison with uncompatibilized ones. The yield stress of blends containing 10% Royalene decreased to 75-80% of the original value. This effect is in agreement with microhardness measurements; the increase in the compatibilizer content causes softening of the blend. The elongation at break and elongation at yield do not depend on the compatibilizer concentration. The compatibilizer does not influence the degree of crystallinity (WAXS data) of the blends either. Vickers microhardness is in good agreement with Tabor's relationship. The differences between long periods of HDPE in Royalene and LDPE in PP/PE blends (SAXS) proved PE/EPDM interaction. The interaction plays a key role in the toughening of PP/PE blends. (C) 2008 Wiley Periodicals, Inc.