Blends of Nylon 6 with very low density polyethylene (VLDPE) have been studied. The blends exhibit two phase morphology wherein VLDPE is dispersed in the form of spherical domains in Nylon 6 matrix. The water absorption of the blends decreased with increasing VLDPE content. The mechanical properties of these blends show loss in tensile and impact strength due to poor adhesion at the interface. Addition of a compatibilizer containing MAH groups was found to result in improved properties. The tensile strength increased significantly whereas impact testing showed no break confirming better stress transfer across the interface. The dynamic mechanical analysis showed presence of microheterogeneity resulting into merging of tan delta peaks as a result of compatibilization. The observed results are ascribed to the possible reaction between reactive groups in Nylon 6 and the compatibilizer leading to compatibilization through copolymer formation.