Ternary blends of polypropylene (PP), ethylene-octene copolymer (mPE), and high-density polyethylene (HDPE) were prepared based on the phase behavior and physical properties of mPE/HDPE binary blends, and the results were interpreted in terms of morphology and both rheological and mechanical properties of the ternary blends as well as the binary blends. It was found that when mPE encapsulates HDPE in the PP matrix, compared to the encapsulation of mPE by HDPE, better blend properties were obtained, presumably because of the compatibilizing effect of mPE between PP and HDPE. (C) 2004 Wiley Periodicals, Inc.