A polycarbonate (PC)/ poly (styrene-co-acrylonitrile) (SAN) alloy modified with styrene-ethylene-butylene-styrene (SEBS) block copolymer was prepared and the influence of SEBS content, PC content, and types of modifier on Izod notched impact strength, tensile strength, flexural strength, and Vicat softening temperature was studied. The results showed that the addition of SEBS could obviously increase the Izod notched impact strength and the elongation at break and decrease the tensile and flexural strength and Vicat softening temperature. PC/SAN alloy modified with SEBS had better mechanical properties than the PC/SAN alloy modified with ABS. DSC analysis and SEM photographs revealed that the SEBS was not only distributed in the SAN phase but also distributed in PC phase in a PC/SAN/SEBS alloy while the ABS was mainly distributed in SAN phase in a PC/ SAN/ABS alloy. (c) 2007 Wiley Periodicals, Inc.