Melt blending of thermoplastic polyurethane (TPU) with polyolefins (PO’s) can lower the cost and improve mechanical and chemical properties. Since TPU and PO’s are completely immiscible polymers, property enhancement cannot be attained. Effect of incorporation of polypropylene copolymer (PPCP), TPU-g-MA, TPU-g- AA as compatibiliser on the miscibility of the blends and effect of clay filler on the mechanical properties were studied. Blends were produced by melt mixing using a single screw extruder. Mechanical and morphological properties were studied. The results show that the blend of thermoplastic polyurethane (TPU)/PO’s with suitable compatibiliser and clay gives excellent performance in all aspects.