Studies have been carried out on the compatibilization of polypropylene and nylon using maleic anhydride grafted polypropylene (Polybond™ 3002). Solution and FTIR studies on the resin indicated that the compatibilizer reacted with nylon. The usefulness of the compatibilizer has been demonstrated for the recycling of shredded industrial carpet waste containing polypropylene and nylon. The mechanical properties and morphology of the extruded resin from carpet are reported.