Blending thermoplastic elastomers into polypropylene (PP) can make it have great potential for high-voltage direct current (HVDC) cable insulation by improving its toughness. However, when a large amount of thermoplastic elastomer is blended, the electrical strength of PP will be decreased consequently, which cannot meet the electrical requirements of HVDC cables. To solve this problem, in this paper, the inherent structure of thermoplastic elastomer SEBS was used to construct acetophenone structural units on its benzene ring through Friedel–Crafts acylation, making it a voltage stabilizer that can enhance the electrical strength of the polymer. The DC electrical insulation properties and mechanical properties of acetylated SEBS (Ac-SEBS)/PP were investigated in this paper. The results showed that by doping 30% Ac-SEBS into PP, the acetophenone structural unit on Ac-SEBS remarkably increased the DC breakdown field strength of SEBS/PP by absorbing high-energy electrons. When the degree of acetylation reached 4.6%, the DC breakdown field strength of Ac-SEBS/ PP increased by 22.4% and was a little higher than that of PP. Ac-SEBS, with high electron affinity, is also able to reduce carrier mobility through electron capture, resulting in lower conductivity currents in SEBS/PP and suppressing space charge accumulation to a certain extent, which enhances the insulation properties. Besides, the highly flexible Ac-SEBS can maintain the toughening effect of SEBS, resulting in a remarkable increase in the tensile strength and elongation at the break of PP. Therefore, Ac-SEBS/PP blends possess excellent insulation properties and mechanical properties simultaneously, which are promising as insulation materials for HVDC cables.