A single or multi-stage process for providing compatible thermoplastic blends of polyphenylene ether resins and polyamide resins is provided by combining such resins with a compatiblizing amount of an agent having in its molecule both acyl-functionality as well as at least one of the following functional groups: carboxylic acid or acid anhydride, acid amide, imido, carboxylic acid ester, amino or hydroxyl group.