Polyolefin based blends have tremendous commercial importance in view of their exceptional properties. In this study the interface of a biphasic polymer blend of PE (polyethylene) and PEO (polyethylene oxide) has been tailored to reduce the interfacial tension between the phases and to render finer morphology. This was accomplished by employing various strategies like addition of maleated PE (PE grafted maleic anhydride), immobilizing PE chains, ex situ, onto MWNTs by covalent grafting, and in situ grafting of PE chains onto MWNTs during melt processing. Multiwalled nanotubes (MWNTs) with different surface functional groups have been synthesized either a priori or were facilitated during melt mixing at higher temperature. NH2 terminated MWNTs were synthesized by grafting ethylene diamine (EDA) onto carboxyl functionalized carbon nanotubes (COOH-MWNTs) and further, was used to reactively couple with maleated PE to immobilize PE chains on the surface of MWNTs. The covalent coupling of maleated PE with NH2 terminated MWNTs was also realized in situ in the melt extruder at high temperature. Both NH2 terminated MWNTs and the in situ formed PE brush on MWNTs during melt mixing, revealed a significant improvement in the mechanical properties of the blend besides remarkably improving the dispersion of the minor phase (PEO) in the blends. Structural properties of the composites were evaluated and the tensile fractured morphology was assessed using scanning electron microscopy. This journal is © the Partner Organisations 2014.