The properties of polyethylene terephthalate (PET) and polypropylene (PP) blends and PET with functionalized PP blends were investigated. Two compatibilizers such as: polypropylene functionalized maleic anhydride (PPMA) and polypropylene functionalized acrylic acid (PP-AA) have been used. Several combination methods were used to characterize the blends. The differences between the properties of the blends with PP and functionalized PP indicate that functionalization had some effects. The amount of functional group is the most important factor in determining the morphology and mechanical properties. An enhancement in morphology, thermal and mechanical properties were due to interaction and adhesion between the functionalized groups with PET end groups. FTIR Spectroscopy confirmed interaction of PET end groups with functionalized PP by shifts in absorption bands of OH and C=O groups to lower frequencies due to functionalization. Solubility test provided further evidence for improved affinity between the functionalized PP and PET compared with untreated compounds.