Epoxidized natural rubber (ENR) was prepared using the performic epoxidation method. TPVs based on ENR/PP blends were later prepared by melt-mixing processes via dynamic vulcanization. The effects of blend ratios of ENR/PP, types of compatibilizers, and reactive blending were investigated. Phenolic modified polypropylene (Ph-PP) and graft copolymer of maleic anhydride on polypropylene molecules (PP-g-MA) were prepared and used as blend compatibilizers and reactive blending components of ENR/Ph-PP and ENR/PP-g-MA blends. It was found that the mixing torque, apparent shear stress and apparent shear viscosity increased with increasing levels of ENR. This is attributed to the higher viscosity of the pure ENR than that of the pure PP. Furthermore, there was a higher compatibilizing effect because of the chemical interaction between the polar groups in ENR and PP-g-MA or Ph-PP. Mixing torque, shear flow properties (i.e., shear stress and shear viscosity) and mechanical properties (i.e., tensile strength, elongation at break, and hardness) of the TPVs prepared by reactive blending of ENR/Ph-PP and ENR/PP-g-MA were lower than that of the samples without a compatibilizer. However, the TPVs prepared using Ph-PP and PP-g-MA as compatibilizers exhibited higher values. We observed that the TPVs prepared from ENR/PP with Ph-PP as a compatibilizer gave the highest rheological and mechanical properties, while the reactive blending of ENR/PP exhibited the lowest values. Trend of the properties corresponds to the morphology of the TPVs. That is, the TPV with Ph-PP as a blend compatibilizer showed the smallest rubber particles dispersed in the PP matrix, while the reactive blending of ENR/PP-g-MA showed the largest particles.