The aim of this research is (i) the generation of different microstructures in polyethylene (PE)/ polyamide (PA) and polyethylene (PE)/ polylactic acid (PLA) immiscible polymer blends using the extrusion technique, by varying temperature profile, extrusion speed and drawing speed; and (ii) analyze the relationship between these morphologies and the resulting mechanical properties. The blends have undergone extrusion processing followed by immediate cooling in a cold-water bath to preserve the microstructure. Furthermore, a two-pair roller system was employed to control the drawing ratio. Through manipulation of the processing conditions, various microstructures were identified, including laminar, microspheres, co-continuous, and fibrillar morphology. The resulting microstructure was shown to affect the mechanical properties significantly. Consequently, the overall material performance can be tailored by varying the blend composition and the processing parameters. Lastly, an attempt has been made to replicate the observed morphology obtained in a polymer blend of virgin grades using a blend of multilayer films, yielding positive outcomes. This finding presents a new avenue for recycling objects composed of diverse materials that were previously unrecyclable through conventional methods.