Attention has been focused on the preparation of latex modified waste tyre dust (WTD ML) and its effect on tensile properties, swelling resistance and morphology as well as thermal properties of polypropylene (PP)-based blends. It is apparent that tensile properties of polypropylene-latex modified waste tyre dust (PP/WTD ML) blends were better than those of polypropylene-unmodified waste tyre dust (PP/WTD UM) blends. The presence of WTD ML enhanced the swelling resistance of the PP/WTD ML blends, indicating an improvement in PP-WTD ML interfacial adhesion. An improved dispersion as well as a size reduction of WTD ML was observed in the micrographs of tensile fracture surfaces. The embedded and encapsulated WTD ML elucidates the improved PP-WTD ML interaction. Moreover, the use of WTD ML did not show any diminution of the blend's thermal properties.