Abstract. Thermoplastic elastomer based on polypropylene (PP) and acrylic rubber (ACM) was investigated, with special attention on the compatibilization and dynamic vulcanization. ACM component contains chlorine and carboxyl groups along the backbone, which act as center for the curing and reactive compatibilization. The last event was carried out by adding a combination of maleic anhydride-modified PP (PP-g-MA) and triethylene tetramine (TETA), which act as interfacial agents between PP and ACM phases. The effectiveness of the compatibilization was suggested from mixing torque and viscosity, determined from rheological measurements. Outstanding mechanical performance, especially elongation at break, and better tensile set (lower values) were obtained with the compatibilization. The dynamic vulcanization also resulted in good mechanical properties for compatibilized blends, but the performance was inferior to that observed for non vulcanized blends. The effect of the compatibilization and/or dynamic vulcanization on the dynamic mechanical, thermal, morphological and stress relaxation properties was investigated.