AES, a terpolymer of acrylonitrile-EPDM(ethylene/propylene/diene elastomer)-styrene, was blended in poly(butylene terephthalate) (PBT). Uniaxial tensile tests were carried out at various strain rates on blends containing 0-50 wt% of AES in order to study the yielding behavior of PBT in these blends by the Eyring equation. It was found that stress concentration factor (gamma) increases sharply when a small content of AES is incorporated in the PBT matrix, but further incorporation seems to have small effect and gamma levels out, a behavior that can be explained by the blend morphology and AES mechanical characteristics. The effect of AES content on the notched Izod impact strength of PBT blends was also examined in depth. It was found that a supertough blend can be achieved with at least 30 wt% of AES in PBT in appropriate molding temperature. Macroscopic and microscopic observations indicate that dilatational process play an important role on the toughening mechanism in PBT/AES blends at notched Izod impact tests. (C) 2004 Elsevier Ltd. All rights reserved.