In order to understand the mechanism of deformation of injection-moulded HDPE/PA6 (25 vol%/75 vol%) blends both with and without compatibilizer, the volume change has been monitored using tensile dilatometry. Dog-bone specimens were either directly moulded or cut from rectangular plaques. Both neat materials and their blends were tested. For the directly moulded dog-bone specimen, a pure shear yielding mechanism was observed for all materials tested, i.e. PA6, HDPE, and their blends in the same proportion as above. In the case of a deformable minor phase (HDPE), the dispersed phase appeared to bear its share of stress and the flow-induced orientation mimics the effect of interfacial modification. This was not the case of a rigid minor phase (glass beads) at the same concentration; the effect of surface treatment changed the mechanism of deformation from mixed mode cavitation shear yielding (45%) to almost pure shear yielding (85%). Machined specimens made of neat PA6 and HDPE deformed through pure shear yielding. The addition of 25 vol% HDPE to PA6 resulted in a mixed mode cavitation (55%)/shear yielding mechanism of deformation in the transverse direction, while in the longitudinal case, the mechanism which prevailed was almost pure shear yielding (80%). This can be attributed to the flow-induced orientation as above. When adding 10% (based on the weight of the dispersed phase) of an ionomer as a compatibilizer, the blend deformed via shear yielding (85%) and in the longitudinal direction both compatibilized and non-compatibilized blends display similar behaviour. Varying the specimen thickness by changing the mould cavity, led to a significant variation in the dilatational behaviour. Dilatometric behaviour is shown to be closely related to the morphology generated as a result of flow-induced orientation. The skin/core ratio, which is an indication of the proportion of the oriented dispersed phase to the non-oriented one, plays a key role in influencing the mechanism of deformation involved.