Polyolefin/polystyrene (PS) blends are difficult to compatibilize using in situ reactive compatibilization techniques, because neither of these polymers has any functional groups that one can use in the formation of a copolymer from these polymer components. In this study, the Friedel-Crafts alkylation was realized in a polyethylene/PS (PE/PS) melt blend, which resulted in improved compatibility between PE and PS. A number of Lewis acid compounds were tested as catalysts, among which the AlCl3 was the most efficient. It was found in this study that the presence of a cocatalyst, such as a cationically polymerizable monomer or a halogenated alkane, significantly enhances the formation of PE-g-PS copolymer. The effects of blending parameters, such as temperature and blending time, on the in situ copolymer formation were investigated. The mechanical properties of compatibilized PE/PS blends were improved considerably. Such an in situ compatibilization technique has potential in the recycling of mixed polymer wastes.