Incorporation of liquid crystalline polymers (LCPs) into commodity polymers remains a challenge in the design of high-performance, low-cost polymeric blends. Blends of a thermoplastic polymer and a nematic LCP are produced here by mechanical alloying. Functionality sensitive X-ray microscopy reveals LCP dispersions as small as 100 nm in diameter. Intimate mixing remains upon subsequent melt processing, indicating that mechanical alloying is suited for applications such as recycling.