Compatibilized thermoplastic vulcanizates (TPVs) based on polypropylene (PP) and polybutadiene rubber (PBR) were developed through the melt-mixing method, and their morphological, rheological, and dynamic mechanical properties were investigated. The composition of PBR/PP blends (30/70 and 40/60) was designed in a way to study the interrelationship between the compatibilizer content and blend composition. In this study, a hydrocarbon resin (MS 40) was employed as the compatibilizer. Based on morphological analysis, the addition of compatibilizer in both blend compositions led to a finer and more uniform distribution of rubber domains; however, only for 40/60 composition, the higher content of compatibilizer caused the formation of a cocontinuous morphology. Both dynamic and static rheology results were highly susceptible to the compatibilizer content and blend composition. According to the storage and loss modulus curves, the incorporation of PBR into PP resulted in a significantly enhanced elastic response with 30/70 composition showing lower elasticity. The viscosity upturn in complex viscosity curves indicated the formation of a three-dimensional network of dispersed rubber domains within the matrix, which led to the appearance of a highly elastic response. Based on the dynamic mechanical analysis, the highly restricted macromolecular motions upon the addition of a compatibilizer confirmed the enhanced compatibility of TPVs.