A novel graft copolymer of unsaturated propylene with styrene (uPP-g-PS) was added to binary blends of isotactic polypropylene (iPP) and atactic polystyrene (aPS) with a view to using such a copolymer as compatibilizer for iPP/aPS materials. Differential scanning calorimetry, optical microscopy, scanning electron microscopy (SEM), wide angle X-ray scattering, and small angle X-ray scattering (SAXS) techniques have been carried out to investigate the phase morphology and structure developed in solution-cast samples of iPP/epsilon PS/uPP-g-PS ternary blends. It was found that the uPP-g-PS addition can provide iPP/aPS-compatibilized materials and that the extent of the achieved compatibilization is composition-dependent. Blends of iPP and aPS exhibited a coarse domain morphology that is characteristic of immiscible polymer systems. By adding 2% (wt/wt) of uPP-g-PS copolymer a very broad particle-size distribution was obtained, even though the particles appeared coated by a smooth interfacial layer, as expected according to a core-shell interfacial model. With increasing uPP-g-PS content (5% wt/wt), a finer dispersion degree of particles, together with morphological evidence of interfacial adhesion, was found. With further increase of uPP-g-PS amount (10% wt/wt) the material showed such a homogeneous texture that neither domains of dispersed phase nor holes could be clearly detected by SEM. The type of interface developed in such iPP/aPS/uPP-g-PS blends was accounted for by an interfacial interpenetration model. The IPP crystalline texture, size, neatness, and regularity of iPP spherulites crystallized from iPP/aPS/uPP-g-PS blends were found to decrease when the copolymer content was slightly increased. Assuming, for the iPP spherulite fibrillae, a two-phase model constituted by alternating parallel crystalline lamellae and amorphous layers, it was shown by SAXS that the phase structure generated in iPP/aPS/uPP-g-PS blends is characterized by crystalline lamellar thickness (L-c) and interlamellar amorphous layer thickness (L-a) higher than that shown by plain iPP; the higher the copolymer content, the higher the L-c and L-a. It should be remarked that considerably larger increases have been found in L-a values. Such SAXS results have been accounted for by assuming that a cocrystallization phenomenon between propylenic sequences of the uPP-g-PS copolymer and iPP occurs and that during such a process PS chains grafted into copolymer sequences remain entrapped in iPP interlamellar amorphous layers, where they form their own separate domains.