This article discusses a convenient chemical approach named in situ chlorination graft copolymerization (ISCGC) to prepare epoxy functionalized isotactic polypropylene (iPP) with a unique structure. This method was carried out in the gas-solid state, and chlorine was used as radical initiator as well as terminate agent. The effect of influence factors on the structure of the functionalized PP was investigated, and it was determined by levels of grafted GMA moieties. The results showed that PP modified with GMA could obtain higher grafting level. Crystallinity and mechanical properties of the functionalized PP were also investigated. For the purpose of researching the reactivity of epoxy groups located at the grafted side chains, trichloroacetic acid and hydroxyl-terminated butadiene-acrylonitrile rubber (HTBN) were used as models to explore the ring open reaction of the epoxy groups of the functionalized PP. The structure and property of the modified PP that has undergone post-ring open reaction was characterized by FTIR, dynamic property analysis. The results indicated that epoxy groups of the graft side chains have successfully undergone ring open reaction in the presence of carbonyl and hydroxyl groups. Additionally, the compatibilization of PP with HTBN is enhanced after PP was modified by GMA.