A liquid crystalline ionomer (LCP) was synthesized by using of an interfacial condensation reaction from 4-phenylene-dicarbonic acid bis (4-carboxyl phenyl) ester, 1, 10-sebacoyl dihydroxy, 1, 12-dodecanedioyl dihydroxy and 2, 5-dihydroxybenzoic acid. The LCP has been blended with PBT and PP. The thermal behavior, morphological structure, and mechanical properties of the blends were investigated by differential scanning calorimetry (DSC), scanning electron microscopy (SEM), and tensile measurement. DSC and SEM results indicate that the LCP interacts with both the dispersed (PP) phase and the matrix (PBT) phase by acting as compatibilizer at the interface. The compatibilizer brings about good adhesion at the interfacial, which reduces the disperse phase size and enables a finely PP phase at matrix. The mechanical properties of the ternary blends are improved when a proper amount of LCP is added. However, when the content of LCP being added to the blends is surplus,the mechanical performances of blends are decreasing. 