Acrylonitrile-butadiene-styrene (ABS)/poly(ethylene glycol-co-cyclohexane-1,4-dimethanol terephthalate) (PETG) blends with various ratios at three different processing temperatures were prepared. A significant synergistic enhancement in tensile strength and ductility for a wide range of compositions was achieved. Phase morphology with droplets, fibrils, and co-continuity was obtained, depending on the composition and processing temperature. Changes of the phase domain sizes and the composition range of co-continuity were found with the change of processing temperature and could be explained by temperature-induced coalescence effects. The synergism and toughening mechanism were discussed based on the temperature-morphology-property relationships. Since the PETG used is a recycled plastic from the waste films and plates, Our work provides a new and inexpensive means for the modification of ABS with high mechanical properties. (C) 2009 Wiley Periodicals, Inc. J Appl Polym Sci 113: 120712-15, 2009