Ground tire rubber (GTR) was devulcanized in twin-screw extruder at 180-220 degrees C and 200-500 rpm, and blended (1:1) with low d. polyethylene (PE-LD) at 180 degrees C and 80 rpm. Similarly, GTR/PE-LD composites were prepd. by coextrusion of components at 180 degrees C and 20-500 rpm. The composite materials were studied for tensile strength, elongation at break, hardness, abrasibility, dynamic mech. properties and morphology. The devulcanization of GTR resulted in improving the mechanical properties of the GTR/PE-LD composites.