Abstract: A low smoke and flame retardant composition comprising an acrylate rubber and a polyolefin resin compatibilized with aluminum trihydrate. The composition can be made by dynamically partially curing blends of acrylate rubber and polyolefin resin with compatibilizing amounts of aluminum trihydrate to yield a thermoplastic elastomer with improved properties at elevated temperatures. The acrylate rubber can comprise an acrylate ester polymer or a copolymer of acrylate ester with ethylene. The polyolefin resin is preferably a high molecular weight polymerization product of either ethylene or propylene, preferably propylene.