Polybutylene terephthalate (PBT)/acrylonitrile-butadiene-styrene (ABS) copolymer blends compatibilized by a mixture of styrene-acrylonitrile-maleic anhydride (ASMA) copolymers and epoxy resin (EP) were prepared through melt reactive extrusion. The morphological, rheological, and mechanical properties of these blends were studied. The epoxy functional groups of EP can react with anhydride groups of ASMA and the PBT terminal groups (-OH and -COOH) simultaneously, leading to the formation of ASMA-EP-PBT graft copolymers. Because of the effective compatibilization of these copolymers at the interface, finer dispersed phase morphologies were obtained. Compared with PBT/ABS/ASMA blends, the addition of EP induced a more stable molten phase structure, with increases of storage moduli, loss moduli, and dynamic viscosities. Results indicated that 1.5 wt% of the EP in the blends was most suited for the compatibilization. Impact properties of these blends were also investigated.