A super-ductile PBT alloy with excellent heat resistance was successfully fabricated by reactive blending of poly(butylene terephthalate) (PBT) with poly(ethylene-coglycidyl methacrylate) together with linear low density polyethylene (LLDPE) and hydrogenated styrene-butadiene-styrene block copolymer (SEBS). It possesses a unique tensile stress-strain curve with no yielding point and large elongation at break, moreover, the alloy did not show serious deterioration of the mechanical properties by high temperature annealing at 1508C for 96 h. The structure-properties relationship is discussed on the basis of transmission electron microscopy, differential scanning calorimetry, dynamic mechanical analysis, and wide-angle X-ray diffraction analysis. The outstanding ductile nature seems to come from the negative pressure effect of LLDPE (or LLDPE/SEBS) particles that dilates the PBT ligament matrix to enhance the local segment motions.