Blends of recycled poly(ethylene terephthalate) (R-PET) and (styrene-ethylene-ethylene-propylene-styrene) block copolymer (SEEPS) compatibilized with (maleic anhydride)-grafted-styrene-ethylene-butylene-styrene (SEBS-g-MAH) were prepared by melt blending. The compatibilizing effects of SEBS-g-MAH were investigated systematically by study of the morphology, linear viscoelastic behavior, and thermal and mechanical properties of the blends. The results show that there is good agreement between the results obtained by rheological measurement and morphological analysis. The rheological test shows that the melt elasticity and melt strength of the blends increase with the addition of SEBS-g-MAH.The Cole-Cole plots and van Gurp-Palmen plots confirm the compatibilizing effect of SEBS-g-MAH. However, the Palierne model fails to predict the linear viscoelastic properties of the blends. The morphology observation shows that all blends exhibit a droplet-matrix morphology. In addition, the SEEPS particle size in the (R-PET)/SEEPS blends is significantly decreased and dispersed uniformly by the addition of SEBS-g-MAH. Differential scanning calorimeter analysis shows that the crystallization behavior of R-PET is restricted by the incorporation of SEEPS, whereas the addition of SEBS-g-MAH improves the crystallization behavior of R-PET compared with that of uncompatibilized (R-PET)/SEEPS blends. The Charpy impact strength of the blends shows the highest value at SEBS-g-MAH content of 10%, which is about 210% higher than that of pure R-PET. J. VINYL ADDIT. TECHNOL., 00:000-000,