The thermoplastic vulcanizates (TPVs) were prepared from polypropylene (PP)natural rubber (NR) by the incorporation of phenol formaldehyde (PF) resin and zinc oxide (ZnO) as impact modifier and the results were compared with the unmodified blend. TPVs were prepared by varying the concentration of impact modifier in a single screw extruder, and pressed with a hot compression on molding machine. The morphology of the prepared blend was examined using scanning electron microscopy (SEM). It was found that the impact strength and tensile strength are increased with increasing modifier concentration. A mechanism for the improvement in the impact properties has been suggested.finally, attempts have been made to correlate the mechanical properties with the morphology of the blend.