The mechanical properties of thermoplastic polyurethane (TPU)/polypropylene (PP) blends were investigated with special reference to the effect of type of polyurethane (ester-or ether-based), blend ratio, compatibilizer, and sequence addition of nanoclay. Tensile strength, stress at different elongations, flexural modulus, and abrasion resistance were analyzed and correlated with morphology. Blends of nanoclay filled thermoplastic polyurethane (TPU)/polypropylene (PP) of various compositions were evaluated by dynamic mechanical properties such as storage modulus (E′), loss modulus (E″), and dissipation factor (tan δ), at a frequency of 10 Hz over a temperature range from −100 to 200 °C. Finally different theoretical models were used to compare the experimental results with theoretical predictions.