Polymer liquid crystalline materials (PLC) blended with engineering plastics (EP) have the potential to reduce viscosity and increase the modulus of the EP, particularly if the PLC is in a favorable fibrillar morphology. A major deficiency in these blends-as with many other immiscible polymeric systems-is poor failure properties. In this paper, polycarbonate (PC) and a rigid, all-aromatic commercial PLC are blended and a third resin, a copolymer of methyl methacrylate and N-methyldimethyl-glutarimide is included as a compatibilizing agent. Characterization of the binary and ternary blends is carried out using rheological, mechanical, morphological, and dynamic mechanical characterization techniques. Binary blends of PLC in a PC matrix result in an immiscible, nodular morphology with low failure stresses. The addition of the copolymeric compatibilizer-particularly one with reactive functionalities-is found to improve tensile strength and yield a fibrillar blend morphology. It is proposed that this may be due to the compatibilizer reducing interfacial tension and adhering to the blend phases, rather than by causing a major change in blend viscosity.