Acrylamide-grafted silicone (AM-g-Si) and maleic anhydride modified EPDM (MA-g-EP) were blended in a weight ratio of 50:50 at 35, 70 and 150 degrees C and moulded at the blending temperature in order to understand the effect of interaction on the physical properties. I.r. spectra confirm the chemical bonding between the two rubbers. The tensile strength, the modulus and the swelling resistance increase with the extent of interaction. Ageing studies at 175 degrees C for various times and dynamic thermogravimetry further reveal improved retention of physical properties and thermal stability of the interactive blends. The chemical interaction increases the storage modulus in the rubbery zone.