A three‐step melt blending process was utilized to produce linear low‐density polyethylene (LLDPE)/reclaimed rubber (RR)/carbon nanotube (CNT) nanocomposites in the presence of maleic anhydride grafted polyethylene as a compatibilizer. The effect of LLDPE/RR ratio and CNT content on the morphological, thermal, mechanical, and rheological behavior of these dynamically vulcanized LLDPE/RR nanocomposites were investigated. The morphological study showed that the RR was dispersed in the LLDPE matrix, and CNT addition led to an improved morphology as smaller RR sizes inside LLDPE were observed. The mechanical results revealed that increasing the RR content decreased the hardness, modulus of elasticity, and elongation at break while CNT improved the tensile properties and other mechanical properties. The differential scanning calorimeter analysis showed that the CNT improved the LLDPE crystallization by acting as nucleation agents. Dynamic mechanical analysis showed higher storage modulus and lower loss factor as compared to the neat blend due to mobility restrictions of the polymer chains induced by the presence of CNT. For the conditions studied, the electrical percolation threshold was found to occur at a very low CNT concentration (about 1 wt %) compared to the literature because of the specific structure produced leading to CNT residing in the LLDPE matrix and at the interface between both polymeric phases. © 2019 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2019, 136, 47795.