The compatibilization mechanism of some compatibilizers for blends of polyolefins with a liquid crystalline polymer (LCP) was studied. Polyethylene (PE) and polypropylene (PP) were blended with a semirigid LCP (SBH) in a batch mixer, either with and without compatibilizers. The latter were two commercially available samples of functionalized polyolefins, that is, a PE-g-MA (HDM) and a PP-g-AA (Polybond 1001) copolymer and some purposely synthesized PE-g-LCP and PP-g-LCP copolymers. Microtomed films of the binary and the ternary blends were annealed at 240 degrees C on the hot stage of a polarizing microscope and the changes undergone by their morphology were recorded as a function of time. The results indicate that the compatibilizers lower the interfacial tension, thereby providing an improvement of the minor phase dispersion. In addition to this, the rate of the coalescence caused by the high-temperature treatment is appreciably reduced in the systems compatibilized with the PE-SBH and PP-SBH graft copolymers. Among the commercial compatibilizers, only Polybond 1001 displayed an effect comparable to that of the above copolymers. HDM improved the morphology of the as-prepared PE blends, but failed to grant sufficient morphological stabilization against annealing-induced coarsening. The results are discussed with reference to the chemical structure of the different compatibilizers.