Oxazoline functionalized polypropylene, polyethylene, ethylene propylene copolymer (E/P), and styrene ethylene/butylene styrene copolymer (SEBS) were studied as compatibilizers in blends of polyolefins with polyesters and polyamides. The blends investigated were polypropylene/polyamide 6, polypropylene/polybutylene terephtalate, and polyethylene/polyamide 6, with engineering thermoplastic contents of 30 wt %. The blends were prepared in a twin-screw midiextruder, and injection molded with a mini-injection molding machine. The effect of compatibilizing on the morphology and mechanical properties of the blends was of interest. Compatibilization substantially improved the toughness of all tested blends. Their strength and stiffness remained at the level of the binary blends when polypropylene or polyethylene based compatibilizers were used, but slightly decreased with other compatibilizers. Morphological studies showed that the particle size was reduced, and the adhesion of the dispersed phase to the matrix improved by compatibilization. The effect of unfunctionalized polyethylene, polypropylene, E/P, and SEBS was also studied to compare the compatibilizers with them.