Blends of aromatic/aliphatic polyamides of varying compositions were extrusion compounded with an impact modifying reactive elastomer and injection molded. The effect of two different twin-screw blending configurations on the physical and mechanical properties of the blends was evaluated. Effects of processing conditions on blend morphology were also examined. The experimental results indicate that the extrusion sequence affects the extent of polyamide matrix-elastomer reaction as well as the morphology. The relationship between blend morphology, blend components structure and reactivity, and processing conditions with ultimate properties is discussed.