Blends of recycled poly(butylene terephthalate) (PBT) parts obtained from scrapped cars, and virgin polypropylene (PP), were prepared in a twin-screw extruder at different compositions. Selected compositions were also prepared with the presence of ethylene-co-glycidyl methacrylate copolymer (E-GMA) and ethylene/methyl acrylate/glycidyl methacrylate terpolymer (E-MA-GMA) compatibilizers. The effect of the composition and the type of compatibilizer, as well as the mixing conditions, on the morphology phase, thermal, viscoelastic behavior, and mechanical properties of the blends has been investigated. Blends PP/PBT of various composition exhibit a coarse morphology and a poor adherence between both phases, resulting in the decrease of ductility, whereas at weak deformation, PBT reinforced the tensile properties of PP. Addition of E-GMA and E-MA-GMA to the PP/PBT blend exhibited a significant change in morphology and improved ductility because of interfacial reactions between PBT end chains and epoxy groups of GMA that generate EG-g-PBT copolymer. Moreover, thermal and viscoelastic study indicated that the miscibility of PP and PBT has been improved further and the reactions were identified. The E-MA-GMA results in the best improvement of ductility.