Bisphenol-A polycarbonate (PC) and poly(butylene terephthalate) (PBT) were melt blended with ethylene-n-butylacrylate-glycidylmethacrylate terpolymer (E-BA-GMA) at various proportions in order to study the effects of compatibilizers on mechanical, thermal and flow properties of blends. Furthermore, on the basis of this study, PC and PBT were melt-blended at 60/40 proportion with three different compatibilizers viz., ethylene-n-butylacrylate copolymer (E-BA), E-BA-GMA and random copolymer of ethylene and glycidylmethacrylate (E-GMA) at 3 phr loading in a co-rotating twin screw extruder. Tensile, flexural and impact tests were carried out on injection molded samples of PC/PBT blends. The notched izod impact strength increases enormously (∼2–3 times) on addition of any one of the three compatibilizers, and elongation at break (%) also improves tremendously (3, 5 and 4 times) on incorporation of E-BA, E-BA-GMA and E-GMA copolymer, respectively while other mechanical properties decreases slightly (3%–8%) on addition of any one of these compatibilizers. The heat deflection temperature (HDT) raises ∼8 °C–9 °C on addition of either E-BA-GMA or E-GMA, while E-BA shows a negative effect on HDT. The melt flow index diminishes significantly (∼5%–20%) on incorporation of these compatibilizers. The morphology studies via scanning electron microscopy of these four blends were carried out to confirm the mechanical results.