New super-tough poly(butylene terephthalate) (PBT) materials were obtained modifying with 10 wt% polyarylate (PAr) a PBT/maleic anhydride grafted poly(ethylene-octene) copolymer (mPEO) blend with mPEO contents from 0 to 30 wt%. PAr was fully miscible in the PBT phase. The presence of mPEO did not influence either the nature or the crystallinity of the PBT-PAr matrix. The decrease in interfacial tension and particle size upon grafting of PEO, indicated that compatibilization took place. The maximum toughness obtained was very high (impact strength more than twenty-fold that of the PBT-PAr matrix). Moreover, it was attained with only 7.5% PEO maleinized at 0.63%, and was accomplished by an increase in stiffness of the blends. The successful modification of the matrix consolidates this method as a new one to improve impact toughness. The critical inter-particle distance (tau(c)) appears as the parameter that control super-toughness in these blends, and it is proposed to depend on adhesion measured by means of the interfacial tension. (C) 2003 Elsevier Ltd. All rights reserved.