It is experimentally shown that an in situ compatibilizer for the thermotropic liquid crystalline polymer blend can be generated in the extrusion process and that the compatibilizing action by the maleic anhydride-attached ethylene-propylenediene terpolymer (MA-EPDM) in the blend of nylon46 and a thermotropic liquid crystalline polymer (polyesteramide) is due to the graft copolymer produced by the chemical reactions between the MA group of EPDM and functional groups of nylon46 and polyesteramide. This is apparent from the H-1-NMR spectra and TGA thermograms. Produced compatibilizers act at the interface to enable better adhesion, better stress transfer, and, hence, deformation of the dispersed phase into fine fibril shape even when the viscosity of the matrix is lower than that of the dispersed phase and the draw ratio is quite low (ca. 1.6).