Aim of this work was to study the effectiveness of a novel oxazoline-functionalized polypropylene as a compatibilizer for PP/PBT and PP/PA6 blends. This polypropylene-based compatibilizer mixes well with the polypropylene and is capable of reacting with the carboxylic and amine end groups of PBT and PA6. Significant improvements in blend toughness were achieved without reduction in strength and stiffness. These effects were related to stabilized morphology of finely dispersed minor phase well attached to the matrix. The enhanced interfacial interactions between the two phases, in particular at high PBT content were evidenced by increased melt viscosity.