A thermoplastic vulcanizate comprises an isotactic polypropylene matrix phase in which cross-linked rubber particles are dispersed, the rubber particles comprising an ethylene-propylene-diene terpolymer (EPDM) containing at least 40 wt % of ethylene-derived units. A propylene-ethylene-diene terpolymer (PEDM) containing at least 60 wt % propylene-derived units and less than or equal to 25 wt % of ethylene-derived units and having a heat of fusion (Hf) of 2 to 10 J/g is added to compatibilize the propylene/EPDM blend.