New super-tough poly(butylene terephthalate) (PBT) materials were obtained by melt blending PBT with both 20 wt% phenoxy (Ph) and 0-30 wt% maleic anhydride grafted poly(ethylene-octene) (mPEO) copolymers with different grafting levels. Ph was completely miscible in the PBT matrix. The presence of mPEO did not influence either the nature of the PBT-Ph matrix or the crystallization of PBT. The overall decrease in particle size and in interfacial tension upon grafting indicated that compatibilization had taken place. Super-tough (impact strength 23-fold that of the PBT) and stiffer PBT based blends were obtained at mPEO contents equal to or higher than 15%. The dependence of the critical inter-particle distance (tau(c)), on both adhesion measured by means of the interfacial tension, and on the relation between the modulus of the matrix and that of the rubbery dispersed phase (E-m/E-d), is proposed.