In this study, it was aimed to improve electrical conductivity and mechanical properties of conductive polymer composites, composed of polypropylene (PP), poly(ethylene terephthalate) (PET), and carbon nanotubes (CNT). Grinding, a type of solid state processing technique, was applied to PP/PET and PP/PET/CNT systems to reduce average domain size of blend phases and to improve interfacial adhesion between these phases. Surface energy measurements showed that carbon nanotubes might be selectively localized at PET phase of immiscible blend systems. Grinding technique exhibited improvement in electrical conductivity and mechanical properties of PP/PET/CNT systems at low PET compositions. Ground composites molded below the melting temperature of PET exhibited higher tensile strength and modulus values than those prepared above the melting temperature of PET. According to SEM micrographs, micron-sized domain structures were obtained with ground composite systems in which PET was the minor phase. (C) 2010 Wiley Periodicals, Inc. J Appl Polym Sci 118: 3041-3048, 2010