The property of thermoplastic elastomers on the basis of low density polyethylene and ground tire rubber was studied in this research. Using the Taguchi's method in design of experiment, some parameters such as type and amount of compatibilizer, type and amount of tire powder and coupling agent, were studied. Ethylene vinyl acetate copolymer grafted with maleic anhydride (MA) and three different types of this copolymer with different content of vinyl acetate as compatibilizer were used in the composition of thermoplastic elastomer. Also the tire powders coated with dicumil peroxide was used as the coupling agent. The effects of these compatibilizers and dicumil peroxide on the rheological, mechanical, physical and morphological properties of samples were analyzed. Rheological and morphological properties were studied using time variations of torque in the internal mixer and scanning electron microscopy (SEM), respectively. Stress at break, young modulus, elongation at break and tear strength as gauges for mechanical property were measured. Also abrasion resistance and hardness as gauges for physical property. Were measured the result showed that the elongation would increase up to 20% of initial samples with increase in vinyl acetate groups in compatibilizers but the stress at break did not change effectively. Also this increase in vinyl acetate groups increased the elongation at break up to 116%. All properties other than elongation at break more decrease effectively with increasing in tire powders. Constant young modulus during increasing in elongation and stress at break up to 136% and 44% initial samples, respectively. Show that the toughening increases significantly with increase in peroxide content. SEM images show that the failure mechanism. Changes from cracking to cavitation in samples containing compatibilizer and peroxide. Simultaneous used compatibilizer and peroxide confirm the synergistic effect in the samples. Keywords: blend; Ground Tire Rubber (GRT); Low Density poly (Ethylene) (LDPE); Thermoplastic elastomers (TPE); Compatibilizer