This paper deals with the continuous preparation of Elastomeric Alloys (EAs) with TPE-like properties by a peroxide induced reactive compounding process of ground tyre rubber and polypropylene in a co-rotating twin screw excruder. Preliminary batch-mixer experiments allowed the specification of suitable screw designs, feeding protocols and necessary residence times. The settings of screw speed and throughput for continuous reactive compounding were based on simplified 1D-simulations of the extrusion process. The extrusion experiments showed that the width of the residence time distribution was the key parameter in determining the mechanical properties of continuously prepared EAs whereas the mean residence time alone had little effecton the EA properties. The TPE-like bahaviour of the continuously prepared EAs was confirmed by quasistatic and cyclic tensile experiments.