Liquid crystalline polymer (LCP) blends with a thermotropic LCP dispersed in the form of microspheres is studied to show the role of LCP spheres. Polycarbonate (PC), p-hydroxybenzoic acid-poly(ethylene terephthalate)copolyester, and random styrene-maleic anhydride copolymer are used as the matrix, the dispersed phase, and thecompatibilizer, respectively. A scanning electron microscopy observation shows the formation of LCP spheres with improved interfacial adhesion in the injection-molded samples via compatibilization. The mechanical tests show in-creased modulus, elongation at break, and fracture-absorbed energy of blends of LCP spheres-dispersed PC. This shows an optimistic potential for the dispersed LCP phase, in spite of its morphology in the form of fibrils for reinforcing the matrix or in the form of microspheres for toughening the matrix. (C) 2003 Wiley Periodicals, Inc.