The polypropylene/polyamide elastomer (PP/PAE) blends were prepared by melt mixing. PP and PAE in PP/ PAE were immiscible completely. The size of PAE domains was large and the clear gap in the interface between PP and PAE existed, which did not meet the conditions enhancing toughness of polymers by elastomer. Therefore, maleic anhydride grafted polypropylene (MP) was used to improve the miscibility between PP and PAE. The miscibility between PP and PAE was improved and the size of dispersed phase PAE decreased by introducing MP. The crystallization of PP became easier by introducing PAE as a nucleating agent. With the increase of PAE content, the melt-crystallization temperatures of PP components in PP/PAE/MP blends increased gradually. The melt-crystallization of the polytetramethylene oxide segment of PAE component in PP/PAE blends were hampered by PP component. In addition, PAE can enhance significantly the toughness of PP, and the tensile strength and modulus did not decrease.