A combined rubber system of ultrafine full-vulcanized powdered rubber (UFPR) and SBS was used for polypropylene toughening. The PP toughened with the combined rubber system shows not only higher impact strength as compared to each rubber component used alone but also good stiffness and heat resistance. Crystallization study shows that the UFPR is more efficient in promoting the crystallization of PP than SBS, leading to a higher crystallinity and an enhancement of stiffness and heat resistance of PP. The combined rubber system containing UFPR and a small amount of SBS still possesses a good nucleating ability. Transmission electron microscopy results indicate that the combined rubber system mostly forms an encapsulation structure of UFPR particles encapsulated by SBS phase. This morphology was also confirmed by scanning electron microscopy results through observing the fracture surfaces of toughened samples. A small amount of SBS was found to be helpful for a better dispersion of UFPR in PP matrix. The causes for the encapsulation morphology and the synergistic toughening effect were discussed. A tentative explanation was given by comparison of the solubility parameter of each component in the toughened samples. (C) 2003 Elsevier Ltd. All rights reserved.