Thermoplastic vulcanizates (TPVs) based on ethylene acrylic elastomer (AEM) and polyamide 12 (PA12) have been developed by the dynamic vulcanization process, in which selective cross-linking of the elastomer phase (AEM) during melt mixing with the thermoplastic phase (PA12) has been carried out simultaneously. TPVs at varied blend ratios (50 : 50, 60 : 40, 70 : 30) of AEM/ PA12 were prepared at 1858C at a rotor speed of 80 rpm up to 5 min of mixing. Di-(2-tert-butyl peroxy isopropyl) benzene (DTBPIB) was chosen as the suitable cross-linking peroxide to carry out the dynamic vulcanization. Morphology study reveals the development of continuous agglomerate of rubber network in case of all the TPVs took place and the average dimension of the rubber particles are in the range of 30-40 nm. TPV based on 50 : 50 AEM/PA12 shows better physicomechanical properties, thermal stability, and dynamic mechanical behavior among all the TPVs. For aging test, TPVs were exposed to air, ASTM oil 2 and 3. Air aging tests were carried out in hot air oven for 72 h at 1258C, while the oil aging tests were carried out after immersion of the samples into the oils in an aging oven. After aging, there are only slight deterioration of physicomechanical properties of the TPVs. Particularly in case of 50 : 50 blend of AEM/PA12, the retention of the properties even after aging was found excellent. The recyclability of these new TPVs is also found to be excellent leading to find potential application in automotives. V C 2015 Wiley Periodicals, Inc. J. Appl. Polym.Sci. 2015, 132, 42655.