In this work the level of continuity and cocontinuity for blends of HDPE/ PS prepared on a twin-screw extruder have been studied by both morphology and dissolution studies. Addition of SEES as an interfacial modifier results in a shift of the percolation threshold for dispersed PS to higher concentrations. The region of phase inversion, however, is maintained at 70% PS. The shift in the percolation threshold to higher values is related to reduced elongation of the PS dispersed phase after interfacial compatibilization. These results indicate that an interfacial modifier significantly influences percolation phenomena without shifting the region of phase inversion. Models based on viscosity ratio have failed to predict the region of phase inversion in this study. Elastic effects are shown to be able to describe the basic tendencies.