Impact‐resistant resins resembling ABS were prepared by hot mixing poly(styrene/acrylonitrile) and rubbery ϵ‐caprolactone block copolymers in the presence of small amounts of an organic peroxide. Measurements of optical properties and softening temperatures indicate that this discovery is a result of mutual solubility between the poly(styrene/acrylonitrile) and the poly‐ϵ‐caprolactone sequences of the block polymer. Advantages of the blend process over latex grafting include lower nonpolymer residue, better color, and more versatility. Disadvantages are slightly lower softening temperature and less surface gloss. Tensile strength, flexural modulus, oil resistance, and melt flow‐impact strength relationship are similar. Versatility of the blend process was demonstrated in the development of transparent compositions. Copyright © 1978 John Wiley & Sons, Inc.