Polymer blends based on recycled high density polyethylene (rHDPE) and recycled poly (ethylene terephthalate) (rPET) with two types of ethylene-glycidyl methacrylate copolymer (E-GMA), Lotader AX8840 and Lotader AX8900 as compatibilizer were produced in a co-rotating twin screw extruder. The effects of adding rPET content on the impact properties of rHDPE-rich blends were also investigated. The result showed an enhancement of about 80-270% in impact properties as compared to those of the Lotader AX8900. The impact strength also showed a decreasing trend as the rPET content was increased. The addition of E-GMA to the rHDPE/rPET blends was found to recover the blend toughness as well as improving the compatibility between HDPE and PET. In this study, the highest result was obtained for the rHDPE/rPET blends using Lotader AX8840 composition with 7.5% E-GMA content. FTIR analysis of the compatibilized blends confirmed the chemical interaction and improved interfacial bonding between the two phases.