The compatibilization by transesterification of aromatic thermotropic Liquid crystal polyesters (Ar-TLCP＇s) and TLCP＇s containing aliphatic ethylene-terephthalate (ET) linkages has been studied. Three Ar-TLCP＇s were mixed with two p(ET/HBA)＇s, each having different extents of blockiness, to form a series of binary blends (Bin-TLCP＇s). The morphology and physical properties of the resultant Bin-TLCP＇s depend on the block structures, compositions, viscosities, and susceptibility to transesterification of the components. In this work, the influence of TLCP block structure and transesterification on the compatibility of the components of the Bin-TLCP＇s is described.