In this short review, some important phenomena often observed in blends of thermotropic liquid crystalline and thermoplastic polymers are described. Their outstanding physical properties will probably lead to applications as in situ composites. LCP of low concentration in the thermoplastic matrix can be used as a processing agent. The relations between rheology, morphology, and mechanical properties of the blends are explained. Flexible elements in the LCP-molecules can lead to partial miscibility and improved adhesion between the components. A review of recent literature is given.