Compatibilized blends comprising a first phase comprising a thermoplastic olefin polymer and a second phase comprising a crosslinked, thermoplastic polyurethane are provided. The first phase is a continuous phase and the second phase can be co-5 continuous with the first phase, or dispersed as a non-continuous phase in the first phase. The blends further include a phenolic resole resin which at least partially crosslinks the thermoplastic polyurethane and acts as a compatibilizer for the olefin polymer and the thermoplastic polyurethane.