Thermoplastic Vulcanizate (TPV) blends are disclosed wherein the otherwise generally compatible blend of thermo-plastic and crosslinked elastomer is made unexpectedly more compatible on the nano-scale, as evaluated Atomic Force Microscopy (AFM). The blends comprise a polyolefin matrix, domains of well-dispersed crosslinked olefinic rubber particles and the presence between the rubber particles of ligaments of a compatibilizing copolymer comprising olefin monomeric units and aromatic monomeric units. The addition of the compatibilizer increased the dispersion of olefinic rubber particles.