To obtain polyethylene terephthalate (PET)/polypropylene (PP) microfibrillar composite (MFC) with good mechanical properties, a high content of PET fibrils in the drawn strand (i.e. PET droplets in the extrudate) is preferred. However, a phase inversion (from PP matrix to PET matrix) takes place when the concentration of the PET reaches 40 wt% at the screw speed of 40 rpm (rounds per minute). This 'PP domains in PET matrix' phase structure is the undesired phase structure for preparing MFC. However, the desired phase structure of 'PET droplets in PP matrix' can be regained by adopting a low screw speed (20 rpm) during extrusion of the PET/PP (40/60); if a higher screw speed is adopted (80 rpm), then a suitable amount of PP grafted maleic anhydride (PP-g-MA) should be incorporated. The PET/PP blends which demonstrate the desired 'PET droplets in PP matrix' phase structure were stretched into strands, and PET/PP MFC was prepared. The MFC with high content of PET microfibrils as the reinforcement exhibits superior tensile properties than the neat PP. POLYM. ENG. SCI., 49:1929-1936, 2009. (C) 2009 Society of Plastics Engineers