Terminally hydroxylated polypropylene (PP) synthesized by a chain transfer method was grafted to graphene oxide (GO) at the chain end. Thus obtained PP-modified GO (PP-GO) was melt mixed with PP without the use of a compatibilizer to prepare PP/GO nanocomposites. Mechanical and electrical properties of the resultant nanocomposites and reference samples that contained graphite nanoplatelets, partially reduced GO, or fully reduced GO were examined. The best improvement in the tensile strength was obtained using PP-GO at 1.0 wt %. The inclusion of PP-GO also led to the highest electrical conductivity, in spite of the incomplete reduction. These observations pointed out that terminally hydroxylated PP covalently grafted to GO prevented GO layers from re-stacking and agglomeration during melt mixing, affording improved dispersion as well as stronger interfacial bonding between the matrix and GO.