We have studied the morphology of blends of PS/PMMA, PC/SAN24, and PMMA/EVA and compared the morphologies with and without modified organoclay Cloisite 20A or Cloisite 6A clays. In each case we found a large reduction in domains size and the localization of the clay platelets along the interfaces of the components. The increased miscibility was accompanied in some cases, with the reduction of the system from multiple values of the glass transition temperatures to one. In addition, the modulus of all the systems increased significantly. A model was proposed where it was proposed that in-situ grafts were forming on the clay surfaces during blending and the grafts then had to be localized at the interfaces. This blending mechanism reflects the composition of the blend and is fairly nonspecific. As a result, this may be a promising technology for use in processing recycled blends where the composition is often uncertain and price is of general concern.