Thermoplastic vulcanizates (TPVs) based on acrylonitrile–butadiene–styrene (ABS)/nitrile butadiene rubber (NBR) blends were prepared by dynamic vulcanization and then compatibilized by chlorinated polyethylene (CM). The effects of CM compatibilizer on the mechanical properties, Mullins effect, and morphological and dynamic mechanical properties of the TPVs were investigated systematically. Experimental results indicated that CM had an excellent compatibilization effect on the dynamically vulcanized ABS/NBR TPVs. Mullins effect results showed that the compatibilized ABS/NBR TPV had relatively lower internal friction loss than the ABS/NBR TPV, indicating the improvement of elasticity. Morphology studies showed that the fracture surfaces of ABS/CM/NBR TPVs were relatively smoother, indicating the improved elastic reversibility. DMA studies showed that the glass to rubber transition temperatures of ABS and NBR phases were slightly shifted toward each other with the incorporation of CM compatibilizer, which indicates the improvement of the compatibility. © 2014 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2014, 131, 40986.