An hydroxyl-functionalized SEBS was obtained when maleated SEBS was reacted with a low molecular weight compound, 3-amine-1-propanol (AMP), in toluene solution. The higher nucleophilicity of the primary amine in the AMP favored the imide formation with negligible self-crosslinking in the SEBS. The SMA was used to probe the graft compatibilization reaction with the hydroxyl-functionalized SEBS. Analogue monomer reactions were made to investigate the mechanisms of the reaction products in the monomer-polymer and polymer-polymer reactions.