Graft copolymer of natural rubber and N-(4-hydroxyphenyl)maleimide (i.e., NR-g-HPM) was synthesized. It was found that the grafting yield increased upon increasing the grafting temperature and the highest grafted HPM content was obtained at 200 °C. Furthermore, increases in concentration of HPM led to drop in grafted HPM. Therefore, an optimum grafting temperature and dose of HPM were found to be 200 °C and 2 phr, respectively. Dynamically cured 60/40 NR-g-HPM/PP blends with various loading levels of HPM in graft copolymerization were then achieved by dynamic vulcanization. It was found that the blend with 2 phr of HPM exhibited the highest tensile strength, elongation-at-break, mixing torque during dynamic vulcanization, storage modulus and complex viscosity and the lowest tension set (i.e., the highest elasticity). This was attributed to the highest grafted HPM which created greater possibility to form linkage between NR-g-HPM and the phenolic modified PP compatibilizer molecules which promoted easier interactions between the blend components. TGA analysis found that the NR-g-HPM/PP blends exhibited two stages of weight loss while the pure PP exhibited a single stage. Furthermore, the NR-g-HPM/PP blend exhibited higher degradation temperature than that of the unmodified NR/PP blend which was the confirmation of higher heat resistance of NR-g-HPM.