Thermal behaviour of blends of a liquid crystalline copoly(ester amide) (Vectra B950) with two isotropic polymers has been studied by differential scanning calorimetry. One of the isotropic polymers is an amorphous polymer - polycarbonate, the other is a semi-crystalline polymer - poly(ethylene terephthalate). It was found that the glass transition temperature of polycarbonate decreases with increasing Vectra concentration in the blend, suggesting a partial miscibility between the Vectra liquid crystalline polymer (LCP) and polycarbonate. The miscibility is enhanced through heat treatment at elevated temperatures presumably due to a transesterification reaction. Moreover, the presence of the amorphous polycarbonate hinders the crystallization of the liquid crystalline polymer in the blends. It was also observed that heat treatment of the Vectra LCP and poly(ethylene terephthalate) blends causes a loss in crystallinity and shifts in transition temperatures of poly(ethylene terephthalate), indicating that exchange reactions occur between Vectra B950 and poly(ethylene terephthalate). Based on these results, a new strategy, in situ compatibilization, is proposed to improve the interfacial adhesion between an LCP and an isotropic polymer.