A series of aqueous solutions of blends based on polyethylene oxide (PEO) and hydroxypropyl methyl celloulose (HPMC) were prepared. The solution of the blends thus obtained was analyzed for miscibility. The effects of compositions of blends and temperature (30 and 500C) on miscibility have been reported. The Huggin plots deviate from linearity according to the degree of compatibility of PEO/HPMC blends at entire concentration range. Interaction parameters have been evaluated for all blends to probe the miscibility. The blends were also characterized by sophisticated techniques such as FTIR, DSC, TGA and SEM.