The most widely used commodity polymers in the rigid packaging industry are polypropylene (PP) and high-density polyethylene (HDPE). For example, blow molding grade of HDPE as a bottle and injection molding grade of PP as a cap are often used to produce detergent bottles. Therefore, the recycled HDPE bottles from post-consumer waste include PP as a contaminant originated from PP bottle caps. To simulate mechanical recycling of bottle waste, the mechanical properties of HDPE-rich-HDPE/PP virgin model blend were studied. For compatibilization, ethylene-based olefin block copolymer, propylene-based olefin block copolymer, ethylene propylene random copolymer, and styrene-butadiene-styrene triblock copolymer were chosen as potential compatibilizer candidates. Contact angle measurements, morphological analysis, adhesion tests of compatibilizer candidates to polymer blend components and the tensile as well as tensile impact properties of the ternary blends were studied. It was found that the ethylene-based olefin block copolymer was the most effective compatibilizer resulting in a return of mechanical properties to those of neat vHDPE due to its ability to encapsulate dispersed vPP particles in a vHDPE matrix (core-shell morphology) and the best adhesion to polymer blend components.