Waste tire powder was functionalized in the presence of various concentrations of allylamine and benzoyl peroxide. Fourier transform infrared spectroscopy studies confirmed the presence of allylamine on the surface of the rubber powder. The surface energy of the functionalized rubber powder revealed that the introduction of allylamine onto the rubber powder surface increased the surface activity. Improvements in the tensile strength, elongation at break, and storage modulus were observed for polypropylene/modified rubber powder/maleic anhydride grafted polypropylene, and this was attributed to an improvement in the compatibility due to the chemical interaction between the rubber powder and compatibilizer. Evidence for the reaction between the rubber surface and compatibilizer was observed in Fourier transform infrared studies. This peroxide-initiated monomer-grafting technique is feasible for large-scale processes. (c) 2007 Wiley Periodicals, Inc.