The polypropylene-graft-cardanol was prepared by reactive extrusion, which is solvent-free melt process, continuous processing, and controllable over residence time. The effect of monomer and initiator concentration on grafting ratio, grafting efficiency, and melt flow index (MFI) was also studied. The yield was quantified by UV-vis spectrometer. The chemical structure was investigated by infrared spectroscopy and gel ratio. A possible mechanism was supposed. The particular structure of cardanol can retain the MFI value of matrix resins and prevent polypropylene (PP) from being decomposed. The grafting ratio could be easily obtained from an experimental formula deduced from the linearity relationship between grafting ratio and MFI. The effect of cardanol grafted onto PP on the compatibility of PP and bamboo powder was studied by contact angle measurements, scanning electron microscopy, and tensile properties test. (C) 2009 Wiley Periodicals, Inc. J Appl Polym Sci 115: 1160-1167, 2010