We show an easy way to graft side-chain liquid crystalline polymers (SCLCPs) on the styrene-butadienestyrene (SBS) triblock thermoplastic elastomer. The method is based on performing a radical polymerization of the monomers of SCLCPs in a solution with dissolved SBS, graft copolymers can be formed through radical transfer to the polybutadiene block which initiates subsequent polymerization. Polymerization of two different monomers containing, respectively, a phenyl benzoate and a biphenyl mesogenic group was carried out. We show that the resulting samples exhibit very different properties as compared with solution-cast SBS/SCLCP blends. The improvement is mainly characterized by (1) a much stronger mechanical strength, (2) an essentially homogeneous morphology with the liquid crystalline component uniformly dispersed, and (3) an enlarged liquid crystalline phase in some cases. One particular feature of this system is the maintenance of the thermoplastic elasticity in samples having a SCLCP content up to 52 wt%. Orientation induction of thin films upon mechanical stretching was investigated through i.r. dichroism. We show that a uniform macroscopic orientation of the mesogenic groups in SCLCPs can easily be achieved upon elongation of the films. More interestingly, a suitable thermal treatment of the deformed films can result in relaxed, free standing films which have almost the initial length before stretching, and in which the stretching-induced macroscopic orientation of the mesogenic groups is retained. We discuss this easy orientation induction and preservation in this system having a complex structure and morphology.