The carbon black, used in rubber compound as reinforcing filler, improves the strength, durability, and wear resistance of the rubber compound. However, it causes filler-filler interaction and results in extensive hysteresis energy losses on deformation. This research aims to reduce hysteresis energy loss of rubber compound by reducing filler-filler interaction and by improving the filler dispersion in rubber matrix. In this study, the effect of carbon black treated with benzyl tri-ethyl ammonium chloride (BTEAC) on solution styrene butadiene rubber and butadiene rubber (SSBR-BR) system was studied. Microscopic study of dispersion and distribution of carbon black in rubber matrix was performed and a significant improvement in dispersion of BTEAC treated carbon black in SSBR-BR rubber matrix was observed. As a result of increased interaction of BTEAC treated carbon black with rubber, the filler - filler interaction was significantly reduced, resulting lower hysteresis energy loss of the compound as expressed by loss tangent (tanδ) value and it has been observed that an extent of around 15% reduction in tanδ value was achieved in rubber compound consisting of BTEAC treated carbon black. In this research, the carbon black was treated with different concentration of BTEAC, such as 0.5%, 1% and 1.5% and the best balance of rubber properties was observed for 1% and 1.5% BTEAC treated carbon black.