Synthesis of poly(butyl acrylate-co-ethylhexyl acrylate)core/poly(vinyl chloride)-shell [P(BA-EHA)/PVC] used as a modifying agent of PVC via semicontinuous seeded emulsion copolymerization is reported here. Diameter distributions and morphology of the composite latex particles were characterized with the aid of particle size analyzer and transmission electron microscopy (TEM). The grafting efficiency (GE) and grafting ratio (GR) of vinyl chloride (VC) grafted onto the P(BA-EHA) with varying content of crosslinking agent and core-shell ratios were investigated. TEM studies indicated that the P(BA-EHA)/PVC latex particles have core-shell structure, and the P(BA-EHA) rubbery particles in blending materials were uniformly dispersed in PVC matrix. Dynamic mechanical analysis (DMA) results revealed that the compatibility between the P(BA-EHA) and the PVC matrix was significantly improved due to the presence of the P(BA-EHA)-grafted-VC copolymer. The notched impact strength of the blending material with 3 wt% of rubber content was seven times that of the PVC. Linear regressions of mechanical properties as loading of the modifier were made. The resulting data of notched impact strength and elongation at break for the blending materials deviated significantly from regression lines within 3-4.5 wt% of the P(BA-EHA) content. The PVC blends modified by the modifier exhibited good toughness and easy processability. POLYM. ENG. SCI., 50:1085-1094, 2010. (C) 2009 Society of Plastics Engineers