A compatible blend of polycarbonate resin with a vinyl (co)polymer blending partner is disclosed. The preparation of inventive blend comprise reactive blending of polycarbonate, a vinyl (co)polymer and a novel compatibilizer in the presence of a transesterification catalyst and under conditions of time and temperature designed to promote transesterification. The compatibilizer is the polymerized reaction product of at least one vinyl monomer that contains no hydroxy groups and a hydroxyl containing monomer conforming to (I) ##STR1##

where R denotes H or C1-C4 alkyl, R1 denotes H, Cl, Br, C1-C4 alkyl, cyclohexyl, or C1-C4 alkoxy, a is 0 or 1, b is 0 or 1, c is 0 or 1, n is an integer of 0 to 4 and X is an OH group. The compatible blends of the invention are characterized by their improved properties.

 
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