The miscibility, mechanical properties, morphology and toughening mechanism of PC/PBA-PMMA blends were investigated. The dynamic mechanical results show that PC/PBA-PMMA blend has good miscibility and strong interfacial adhesion. The Izod impact strength of blend PC/PBA-PMMA with 4% (volume fraction) PBA-PMMA core-shell modifier is 16 times higher than that of pure PC. The core-shell volume fraction and thickness of the PMMA shell have effect on the toughness of PC/PBA-PMMA blends. As PMMA volume fraction increases, the toughness of PC/PBA-PMMA blend increases, and reaches a maximum value at 30% volume fraction of PMMA or so. The tensile properties of PC/PBA-PMMA blend with a minimum amount of PBA-PMMA modifier show that brittle-tough transition has no significant variance in comparison with that of pure PC. The scanning electron microscopic (SEM) observation indicates that the toughening mechanism of the blend with the pseudo-ductile matrix modified by small core-shell latex polymer particles is the synergetic effect of cavitation and shear yielding of the matrix.