A thermoplastic composition is provided which comprises a blend of a first thermoplastic, such as a copolymer of styrene and maleic anhydride, a second different thermoplastic component and a modified elastomeric component, such as EPM or EPDM, which has been modified with a specified functional monomer, such as a 2-substituted-5-norbornene. The composition has improved impact strenght, and is particularly well suited for pelletilization.