This paper reports on functional polymer blends prepared by melt-processing technologies for proton-exchange membrane applications. Styrene-ethylene/butylene-styrene (SEBS) and high-density polyethylene (HDPE) were melt blended using twin-screw compounding, extruded into thin films by extrusion-calendering. The films were then grafted with sulfonic acid moieties to obtain ionic conductivity leading to proton-exchange membranes. The effect of blend composition and sulfonation time was investigated. The samples were characterized in terms of morphology, microstructure, thermo-mechanical properties and in terms of their conductivity, ion exchange capacity (IEC) and water uptake in an effort to relate the blend microstructure to the membrane properties. The HDPE was found to be present in the form of elongated structures which created an anisotropic structure especially at lower concentrations. The HDPE increased the membrane mechanical properties and restricted swelling, water uptake and methanol crossover. Room temperature through-plane conductivities of the investigated membranes were up to 4.5E−02Scm −1 at 100% relative humidity, with an ionic exchange capacity of 1.63 meq g −1 .Crown