In order to prepare a new reactive polymer, a new vinylbenzyloxazoline has been synthesized. The monomer has been characterized by H-1, C-13 NMR and I.R. A rheocord was used to graft oxazoline reactive group onto ABS by free radical initiation reaction. The grafting reaction was confirmed by using Fourier Transform Infrared Spectroscopy. This ABS based compatibiliser mixes well with ABS and is capable of reacting with the carboxylic and amine end groups of PA.