Polypropylene (PP) /ethylene-propylene-diene monomer (EPDM)/zinc dimethacrylate (ZDMA) blend (EPDM/PP ratio of 30/70) with remarkable extensibility was successfully prepared via peroxide dynamic vulcanization. The uniaxial tensile properties, crystallization behavior, structure, and morphology during stretching were investigated. The tensile process study showed that the PP/EPDM/ZDMA blend exhibited the rubbery-like behavior with an elongation beyond 600%. The ZDMA graft-product domain increased the compatibility and interfacial adhesion between rubber and PP phases, while if reduced the crystallinity of the PP phase. On the basis of TEM and SEM analyses, we found that the cross-linked rubber particles could be elongated and oriented along the tensile direction, whereas the ZDMA graft-product domain "encapsulated" rubber phase together, acting as a "bridge" between elongated rubber phases and the PP phase during uniaxial stretching. The stress could be effectively transferred from the PP phase to the numerous elongated rubber phases due to the excellent compatibility and, interfacial adhesion between rubber and PP phases, resulting in the rubbery:like behavior.