The compatibilizing effect of polyarylate-polystyrene (PAR-PS) block copolymer prepared from macroazo initiator was examined in polyarylate/polystyrene blends from the viewpoints of morphology, density, and thermal, mechanical, and rheological properties. PAR-PS block copolymer enhanced the mutual dissolution of the homopolymers. Reduced dispersed-domain size and increased density showed the efficiency of the block copolymer as a compatibilizing agent. Results from mechanical and rheological properties could also be explained by the compatibilizing effect of PAR-PS block copolymer in the blends.