Blends of polypropylene (PP) and polybutadiene rubber (BR) were prepared by melt mixing within an internal mixer in which the rubber composition ranged from 5 to 20 wt%. Also, dicumyl peroxide (DCP) was added in different content to induced compatibility by two compounding strategies: 1) dispersing it in BR at room temperature in an internal mixer before melt mixing, 2) adding it to the PP/PB during mixing. Zinc dimethacrylate (ZDMA) was used as a coagent in order to control chain scission of PP and to enhance the interfacial reactions. To reduce the number of experiments, the Taguchi method was utilized in designing of experiments. Results were explained in terms of Izod impact strength and tensile tests.