Blends of in situ polymerized PET from cyclic oligomers (c-PBT) and PVB were prepared with varying compositions and compared with mechanical blends of conventional PBT and PVB. The materials were characterized by a variety of techniques including DSC, DMTA, DETA, FTIR, NMR and GPC. It was found that the in situ prepared blend of c-PBT/PVB has one glass transition temperature and shows evidence of miscibility. In contrast, the conventional blend of PBT/PVB shows incompatibility after blending. The cause of miscibility in the in situ prepared PBT/PVB blends is thought to be the formation of a graft copolymer. These results show that there are unique possibilities for in situ processing by combining polymerization of cyclic polyester oligomers with blending. (C) 2003 Elsevier Science Ltd. All rights reserved.