Ternary blends of poly(p-phenylenesulfide) (PPS), thermotropic liquid crystalline polyesteramide (LCP), and polysulfone (PSF) were investigated in terms of processing characteristics, blend morphology, and physical properties. In the incompatible PPS/LCP blends, LCP imparted a nucleating effect to the crystallization of PPS. Up to 10wt% LCP content, the tensile properties of PPS/LCP blends were enhanced with increasing LCP content, but they deteriorated if the LCP content exceeded 20wt%. Addition of a third component, PSF, to the 90/10 PPS/LCP blend promoted development of rodlike or threadlike fibrillar structure and orientation of the deformed LCP domains, which led to improvement of tensile strength up to 20%.