An experimental study on the dispersed two‐phase flow of visco‐elastic polymeric melts has been carried out. For the study, blends of two incompatible polymers, polystyrene and high‐density polyethylene, were extruded through a circular tube having an L/D ratio of 20. Mixing was achieved by the combined use of a single‐screw extruder and a Static Mixer (Kenics Corp., Thermogenizer). The state of dispersion of one polymer in another was determined from microphotographs taken of extrudate samples. The variables investigated in order to better understand the mechanism of drop formation, were the blending ratio of a mixture, its flow rate, and its melt temperature. In the present study, measurements were taken of wall normal stresses along the longitudinal direction of a capillary die, permitting one to determine both the viscous and elastic properties of the material investigated. It has been found that the viscosity of the blend goes through a minimum and then through a maximum at certain blending ratios, and that the elasticity of the blend goes through a maximum and then through a minimum at certain blending ratios. Interestingly enough, it has been observed that the minimum viscosity occurs at approximately the same blending ratio which gives rise to the maximum elasticity, and that the maximum viscosity occurs at approximately the same blending ratio which gives rise to the minimum elasticity. A phenomenological argument is presented to explain the physical origin of the observed viscoelastic properties of dispersed two‐phase polymer systems.