Blends of polyamide 12 (PA12) with styrene/ethylene-butylene/styrene (SEBS) and maleic anhydride grafted SEBS (SEBS-g-MA) were prepared by twinscrew extrusion and injection molding. The morphology, mechanical properties, and dynamic mechanical properties of the blends were studied. The morphology of the blends was evaluated from the etched surfaces of cryogenically fractured specimens with scanning electron microscopy. The morphological parameters showed that the PA12/SEBSg-MA blends (PM series) exhibited a finer and more uniform rubber dispersion than the PA12/SEBS blends (PS series) because of the interfacial chemical reactions. SEBS functionalization via maleic anhydride grafting strongly affected the morphological parameters, such as the domain size, interfacial area per unit of volume, and critical interparticle distance, but the distribution of the rubber domains in the blends was less affected. Tensile and impact studies showed that the PS blends had worse mechanical properties than the PM blends. The tensile strength and elongation at break of the PM blends were considerably greater than those of the PS blends. The fracture toughness and energy values determined for notched Charpy specimens in high-speed impact tests were markedly higher for the PM blends than for the PS blends. A similar observation was obtained from instrumented falling weight impact studies. Dynamic mechanical analysis confirmed the incompatibility of the blend components because the glass-transition temperatures of PA12 and the rubber phase (SEBS and SEBS-g-MA) were not affected.