The effect of processing conditions on the melt formation of a graft-copolymer compatibilizer for blends of a thermotropic liquid crystalline polymer (TLCP) and polyolefms was investigated. The compatibilizer was formed by a melt acidolysis reaction of a 50/50 (w/w) blend of TLCP and the sodium salt of a poly(ethylene-coacrylic acid) ionomer. The effects of various processing conditions in a batch mixer and a single-screw extruder on the extent of reaction were assessed. The extent of graft-copolymer formation and the efficacy of the product as a compatibilizer for TLCP/polyethylene blends were affected by the processing temperature and the strew (or rotor) speed.