Plastic/rubber blends are ultrasonically treated during continuous extrusion in order to investigate the in-situ compatibilization of the blends without any chemicals. The mechanical properties of each blend were significantly improved by ultrasonic treatment. It is believed that ultrasonic treatment of the blends enhances intermolecular interaction, improves adhesion at the interface and creates copolymers during very short time. The created copolymers are believed to be a major reason for enhancing mechanical properties of the blends by in-situ compatibilization during extrusion. This process can be applied fur preparing plastic/rubber blends to make thermoplastic elastomers or plastic/plastic and rubber/rubber blends, and for making novel copolymers from practically any pairs of existing polymers to achieve desirable chemical and physical properties.