Effects of the compatibilizer polypropylene grafted with glycidyl methacrylate(PP-g-GMA) on the morphology, thermal, rheological and mechanical properties of polypropylene and polycarbonate blends (PP/PC) were studied. It was found that the addition of PP-g-GMA significantly changed their morphology. The mean size of domains reduced from 20 mu m to less than 5 mu m. The dispersed domain size is also strongly dependent upon the content of PP-g-GMA. The interfacial tension of PP/PC/PP-g-GMA (50/30/20) is only about one-tenth of PP/PC (70/30). The crystallization temperature of PP in PP/PC/PP-g-GMA is 5-8 degrees C higher than that of PP in PP/PC blends. Characterization studies based on mechanical properties, differential scanning calorimetry, rheology and morphological evidence obtained by using scanning electron microscopy support the hypothesis that an in-situ copolymer PP-g-PC was formed during the blending process.