The effects of maleic anhydride-grafted polypropylene (PP-g-MAH) addition on polypropylene (PP) and poly(acrylonitrile-butadiene-styrene) (ABS) blends were studied. Blends of PP/ABS (70/30, wt%) with PP-g-MAH were prepared by a twin-screw extruder. From the results of mechanical testing, the impact, tensile and flexural strengths of the blends were maximized at a PP-g-MAH content 3 phr. The increased mechanical strength of the blends with the PP-g-MAH addition was attributed to the compatibilizing effect of the PP and ABS blends. In the morphological studies, the droplet size of ABS was minimized (6.6 μm) at a PP-g-MAH content of 3 phr. From the rheological examination, the complex viscosity was maximized at a PP-g-MAH content of 3 phr. These mechanical, morphological and rheological results indicated that the compatibility of the PP/ABS (70/30) blends is increased with PP-g-MAH addition to an optimum blend at a PP-g-MAH content of 3 phr.