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Polyphenylene ether (PPE)/glycol modified polyethylene terephthalate (PETG) blends with various compositions were fabricated via a melt blending method using a laboratory-scale twin-screw extruder. The fracture surface morphology of the PPE/ PETG blends was examined by scanning electron microscopy (SEM) and, based on its data, it was observed that PPE and PETG are immiscible. Thermal stability and mechanical properties of the blends were also examined via thermal gravimetric analysis and a universal testing machine (UTM), respectively. Rheological properties of the PPE/PETG blends were observed with both steady shear and dynamic tests using a rotational rheometer. The effect of poly(styrene-co-maleic anhydride) (SMA) as a compatibilizer on the PPE/PETG blends was additionally investigated. An increase in quantity of PPE in the PPE/PETG blends and the addition of SMA were observed to enhance their thermal and mechanical properties.