The ternary blends of acrylate rubber (ACM), poly(butylene terephthalate) (PBT), and liquid crystalline polymer (LCP) were prepared by varying the amount of LCP but fixing the ratio of ACM and PBT, using melt mixing procedure. The influence of interactions on thermal and dynamic mechanical properties of the blends was investigated over the complete composition range. The techniques applied were Fourier transform infrared spectroscopy (FTIR), differential scanning calorimetry (DSC), thermogravimetry (TG), and dynamic mechanical analysis (DMA). The FTIR spectroscopy analysis showed reduction in the intensity of the peak corresponding to epoxy groups of ACM with increasing heating time at 290 degrees C. This implies that there is a chemical reaction between the epoxy and end groups of PBT and LCP. Glass transition temperature (T-g) and melting temperature (T-m) of the blends were affected depending on the LCP weight percent in the ACM/PBT blend, respectively. This further suggests the strong interfacial interactions between the blend components. In presence of ACM, the nucleating effect of LCP was more pronounced for the PBT phase. The thermogravimetric study showed improved thermal stability for the blends with the increasing LCP content. (c) 2006 Wiley Periodicals, Inc.