The dynamic rheological behavior and phase morphology of Polytrimethylene terephthalate (PTT) and ethylene propylene diene monomer (EPDM) uncompatibilized blends and those compatibilized with maleic anhydride grafted EPM (EPM-g-MA) were investigated. Effects of blend ratio and reactive compatibilization on the morphology and rheological properties of compatibilized and uncompatibilized blends have been analyzed. The viscosity ratio between the polymers was found to be sensitive to frequency which gave an indirect idea about the unstable morphology. The complex viscosity and dynamic modulus increased with increase in compatibilizer addition up to critical micelle concentration. Palierne and Choi-Schowalter models were used to calculate the interfacial tension between the polymers. The interfacial tension decreased with the addition of compatibilizer up to CMC. It was also found that the minimum value of interfacial tension was found at CMC beyond that a levelling off is observed. The rheological properties of both compatibilized and uncompatibilized blends are found to be closely related to their phase morphology. POLYM. ENG. SCI., 50:1945-1955, 2010. (C) 2010 Society of Plastics Engineers