Using the extrusion blown film process, we obtained linear low density polyethylene (LLDPE)/ethylenevinyl alcohol copolymer (EVOH) blends with an improved barrier property by generating a laminar structure of the dispersed phase in the matrix phase. This laminar morphology induced by drawing and blowing was found to result in a significant decrease in toluene permeability with only 10 wt% EVOH. Effects of compatibilizer content and processing parameters such as blending sequence, screw configuration, and stretch ratio on the toluene permeability and morphology of the blends were investigated. It was revealed that the optimum amount of compatibilizer, maleic anhydride grafted LLDPE, should be used to improve the barrier property of the LLDPE/EVOH blends with a well developed laminar structure. The blending sequence had a significant influence on the permeability of the blends. The blend films exhibited a more pronounced laminar structure when all blend components were simultaneously melt blended in a single screw extruder. In addition, the screw configuration designed to impart a low shear stress and the balanced stretching in the machine and transverse directions were more favorable processing conditions in obtaining high barrier blends.