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Small amount of large surface area graphene (G) is expected to significantly alter functional properties of polymers. The property enhancement is a function of degree of exfoliation and dispersion of G as well as its compatibility with base polymer. However, nonpolar nature of polyolefins such as polypropylene (PP) restricts homogeneous dispersion of G, leading to significant agglomeration and properties reduction. In this work, two compatibilizers, poly (ethylene‐co‐butyl acrylate) (EBA) (new compatibilizer) and PP‐grafted‐maleic anhydride (MA‐PP) (conventional compatibilizer) were compared to enhance the dispersion efficacy of G in PP. The EBA‐compatibilized nanocomposites exhibited 44% increase in the Young's modulus compared to 32% increment in MA‐PP‐compatibilized nanocomposites. Higher elongation at break for EBA‐compatibilized nanocomposites is attributed to lower degree of crystallinity in these nanocomposites. On the other hand, EBA‐compatibilized nanocomposites showed significantly improved thermal stability compared to MA‐PP‐compatibilized nanocomposites. The results indicate that EBA may act as a potential compatibilizer for G/PP nanocomposites. [ABSTRACT FROM AUTHOR]