Blending ground rubber with thermoplastic and thermoset polymers is a very cost effective and efficient method for recycling rubber waste. However it is important for vulcanized rubber particles and the thermoplastic matrix to adhere to each other to form co-continuous type morphology to provide necessary strength properties. The paper discusses the principles underlying compatibilization and discusses the three types, namely mechanical, non-reactive and reactive compatibilization. Past work in compatibilizing ground rubber from tire waste (GRT) with thermoplastics has been reviewed and the use of compatibilized GRT/ plastic products in the preparation of a variety of value-added products, including thermoplastic elastomers has been discussed.