The brittle nature of epoxy polymers is one of their main drawbacks, preventing their widespread applications. In this research article, a new modifier with an extremely toughening effect on brittle epoxy was developed. It was found that introducing low-molecularweight polyethylene glycol (PEG) in the low amounts (up to 10%) into epoxy matrix considerably improves the impact and fracture properties of epoxy thermosetting polymer without attenuating its tensile properties. Epoxy/PEG hybrid containing 10% PEG exhibited an impact strength of 56.3 kJ/m 2 which is 5.7 times greater than that of pristine epoxy. The fracture strength of 7.7 MPa m 1/2 with 540% increase compared to pure epoxy was also observed for the hybrid material. Morphological, chemical, and thermal properties of epoxy/ PEG hybrid were studied using scanning electron microscopy, Fourier transform infrared spectrometry, and differential thermal analysis, respectively, to find out the basic reasons behind such a considerable improvement. A new morphology, consisting uniformly dispersed PEG nanoparticles in the epoxy matrix, was observed for the modified hybrid. This unique morphology for epoxy/PEG was named as nanoblend. The results showed that the formation of nanoblend morphology with strong interaction between epoxy and PEG in the blend structure is responsible for epoxy toughness.