The object of this study was to investigate the physical properties and morphology of melt-mixed blends containing poly(butylene terephthalate) (PET) with several functionalized polyolefins such as ethylene/vinyl acetate copolymer (EVA], EVA-g-maleic anhydride (EVA-g-MAH), EVA-g-ACID, EVA-g-ACID/ACRYLATE, ethylene methacrylate-g-MAH (EMA-g-MAH), ethylene/ethyl acrylate copolymer (EEA] and an ethylene ionomer. Special focus was made on PBT/EVA-g-MAH and PBT/EMA-g-MAH blends compared with PBT/EVA and PBT/EMA blends. Blends were prepared in a counter-rotating twin-screw extruder. Mechanical and thermal properties, glass transition temperature and morphology were examined using a tensile testing machine, differential scanning calorimeter (DSC), dynamic mechanical analysis and Scanning Electron Microscope (SEM). PBT/EVA-g-MAH and PBT/EMA-g-MAH blends exhibited better impact strength than PBT/EVA and PBT/EMA blends because of the larger interfacial adhesion of EVA-g-MAH and EMA-g-MAH with PET than EVA and EMA.