A heterogeneous polymerization model, including an initial solution polymerization model and a later two‐phase polymerization model, is developed to describe graft free‐radical copolymerization of styrene and acrylonitrile in the presence of poly(propylene glycol). The diffusion‐controlled termination, initiation, propagation, and transfer in the dispersed phase are considered reasonably. The model describes the polymeriztion kinetics well. The main polymerization locus shifts from the continuous phase into the dispersed phase at monomer conversion of ≈0.03–0.05, leading to sharp increase in polymerization rate and molecular weight, decrease in graft efficiency and broadening of the MWD.