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The compounding of waste EPDM from postindustrial scrap with polypropylene (PP) is a possible way to manufacture thermoplastic elastomers to solve a significant environmental problem. Accordingly, the present study considers the one-step (OS), two-step (TS), and dynamic revulcanization (DR) compounding methods for the manufacturing of PP/EPDM blends at different ratios of components with the aid of an ultrasonic twin-screw extruder (TSE) at various ultrasonic amplitudes. In the OS method, PP and waste EPDM particles were directly compounded using TSE with and without ultrasonic treatment. In the TS and DR methods, the waste EPDM particles were fed into the TSE and devulcanized without and with ultrasonic treatment. Then, in the TS method the devulcanized EPDM was compounded with PP using TSE without the imposition of ultrasound. In the DR method, the devulcanized EPDM after compounding with curatives was mixed with PP and dynamically revulcanized without the imposition of ultrasound in TSE. The die pressure during compounding was recorded and correlated with the rheological properties of compounds. The mechanical properties of the PP/EPDM blends obtained in the OS and TS methods did not show any improvement with ultrasonic treatment. In the DR method, all the PP/EPDM blends showed a significant increase in the tensile strength and elongation with ultrasonic amplitude and a slight decrease in the Young's modulus. In particular, a tensile strength of 30 MPa and an elongation at break of 400% were achieved at an ultrasonic amplitude of 13 μm for the PP/EPDM blend at a ratio of 75/25. The complex viscosity, storage, and loss moduli of dynamically revulcanized PP/EPDM blends increased with the ultrasonic amplitude while the loss tangent decreased. At the same time, the results for the blends obtained by the OS and TS methods showed an opposite trend in the dynamic property behavior with the ultrasonic amplitude. Optical micrographs indicated that the blends obtained by the DR method at an ultrasonic treatment at 13 μm showed the lowest sizes of dispersed revulcanized EPDM particles in the PP matrix, leading to the excellent performance of these thermoplastic elastomers.