Polyurethane elastomers (PUEs) based on 4,4'-diphenylmethane diisocyanate (MDI), 1,4-butanediol (BDO) and two kinds of aliphatic polycaprolactone (PCL) diols with molecular weight of 1000 Da and 2000 Da have been synthesized and melt-blended with polycarbonate (PC). The compatibility of PC and PUEs was investigated by differential scanning calorimetry (DSC), dynamic mechanical analysis (DMA) and scanning electron microscopy (SEM). The results indicated that the glass transition temperature (T-g) of PC decreased by 0-40 degrees C when 010 wt % of PUEs incorporated into the PC matrix. Phase separation in the blends was not detected by means of DSC characterization, but measurements of DMA and SEM indicated that phase separation existed in the blends of PC and PUEs synthesized with 1000 Da PCL-diol. As for PUEs/PC blend in which 2000 Da PCL-diol as PUEs' soft segments, it turned from completely compatible to partially when the NCO/OH ratio for the PUEs prepolymer was increased from 2 : 1 to 4 : 1. The compatibilities of PC and PUEs were greatly influenced by the molecular weight of polyols and the ratio of NCO/OH in the PUE prepolymer, higher molecular weight of polyols and lower NCO/OH ratio resulted in better compatibility. (C) 2011 Wiley Periodicals, Inc. J Appl Polym Sci, 2012