We have prepared a series of polypropylene/exfoliated graphene (PP/EG) nanocomposite films via efficient melt-compounding and compression, and investigated their morphology, structures, thermal transition behavior, thermal stability, electrical and mechanical properties as a function of EG content. For the purpose, EG, which is composed of disordered graphene platelets as reinforcing nanoscale fillers, is prepared by the oxidation/exfoliation process of natural graphite flakes. SEM images and X-ray diffraction data confirm that the graphene platelets of EG are well dispersed in PP matrix for the nanocomposites with EG contents less than 1.0 wt%. It is found that thermo-oxidative degradation of PP/EG nanocomposites is noticeably retarded with the increasing of EG content. Electrical resistivity of the nanocomposite films was dramatically changed from ${sim}10^{16}$ to ${sim}10^6;{Omega}{cdot}cm$ by forming electrical percolation threshold at an certain EG content between 1 and 3 wt%. Tensile drawing experiments demonstrate that yielding strength and initial modulus of PP/EG nanocomposite films are highly improved with the increment of EG content.