Plastic deformation upon stretching was investigated in ternary blends of polypropylene, polyamide 6 and maleic anhydride-grafted polyethylene-octene elastomer (PP/PA6/POE). A novel video-controlled tensile testing method was utilized, which allows recording simultaneously axial strain, axial stress and volume strain while axial strain-rate is regulated at a constant value even after necking has begun. Increasing the alloying content modifies drastically the original stress-strain properties of PP: yield softening is suppressed and strain hardening is increased. As for the volume strain, which is representative of the overall cavitation process, it is found to decrease with increasing alloying content (apart from a small increase for low alloying content). This unexpected result indicates that the finely dispersed cavities nucleated under tension at the POE interphase of PA6 particles and at isolated POE particles favor the profuse development of plastic shear bands in the PP matrix. As such, it can be considered as an experimental evidence of the synergistic effect of cavitation and shear banding in a structural polymer. (C) 2004 Elsevier Ltd. All rights reserved.