The flow-induced phase morphological development under different extrusion conditions was studied in terms of the theological property and interfacial tension of various elastomers and thermoplastics. The interfacial tension for elastomers and thermoplastics was investigated by using a breaking thread method (1-4). We found that the method is suitable for measuring interfacial tension without degradation. The droplet-fibrillation transition phenomenon was observed in various extrudates of fluoroelastomer/polycarbonate blends. The criteria for the flow-induced morphology, in particular the droplet-fibrillation transition, are critically discussed in this paper.