The ethylene-propylene rubber (EPDM) scrap generated from automobile weatherstrip manufacturing process was used to make a thermoplastic elastomer through blending with polypropylene. The surface activated EPDM powder was obtained by the high temperature and shear pulverizer. The addition of surfactant resulted in more surface activated EPDM powder and the optimum loading amounts of surfactant was 1.5 phr. Maleic anhydride was grafted onto polypropylene by reactive blending to give functionalized polypropylene. The wetting property between EPDM scrap and polypropylene was improved by the addition of poly (ethylene-co-acrylic acid) as a compatibilizing agent. Poly(ethylene-co-acrylic acid) decreased the surface tension of polypropylene and thus would contribute to the wettability with EPDM powder.