Polyethylene (PE) and isotactic polypropylene (iPP) are two of the most widely used polymer materials, whose huge consumptions urge people to tackle their recycling problem. The incompatibility of PEs and PPs has resulted in their waste streams being recycled into low-value products with poor mechanical properties. Herein, a series of iPP-based olefin block copolymers (OBC) with up to five alternating hard/soft blocks were prepared via coordinative chain transfer polymerization. The facile synthetic strategy of multiblock OBCs not only overcame the inefficiency and diseconomy of living coordination polymerization, but also avoided the critical requirements of complex dual-catalyst systems for chain shuttling polymerization, making it suitable for low-cost and large-scale production of OBCs. These well-designed OBCs provided excellent elastomeric properties combining high strength, high elongation, and high elastic recovery. More importantly, they also demonstrated a strong ability in the upcycling of PE/PP mixtures, transforming brittle blends into tough materials. The PE/PP blends compatibilized with OBCs exhibited greatly improved interfacial adhesion and mechanical properties, with up to 25 times higher elongation at break compared to uncompatibilized blends. It was further demonstrated by the extruding-blow-molded bottles prepared using post-consumer PE/PP products, where recycled bottles containing OBCs exhibited much better mechanical properties than those without OBC. The synthetic strategy of OBCs and the upcycling route of PE/PP blends in this work are not only of great academic value, but also of substantial economic and environmental significance, providing insights into the sustainable development of plastics.