Minor amounts of poly(ethylene‐co‐methacrylic acid) ionomer neutralized with Zn (PEMA‐Zn) were added in the melt state to blends of polypropylene (PP) with up to 40% of poly(amino ether) (PAE) resin. Given the good barrier characteristics of PAE, it is a good candidate to improve the poor barrier properties of PP. However, PP/PAE blends were found to be almost fully immiscible, with a large dispersed phase size and a brittle mechanical behavior. Upon PEMA‐Zn addition, the dispersed particle size clearly decreased from diameters of several microns to diameters mostly below 0.5 μm, indicating that compatibilization occurred. This compatibilization was due to the presence of PEMA‐Zn in the two phases of the blends and was additionally proven by the large decrease observed in the interfacial tension. Further, the fine morphology led to an enhancement in the unnotched impact strength of the ternary blends and of their ductile behavior (elongation at break 30‐ to 40‐fold that of the corresponding binary blends). POLYM. ENG. SCI., 50:1512–1519, 2010. © 2010 Society of Plastics Engineers