We investigate the interfacial compatibilization effect of reduced octadecylamine-functionalized graphene oxide (ODA-GO) on the morphological and rheological properties of immiscible homopolymer blends of polydimethylsiloxane (PDMS) and polyisoprene (PI). We prepared droplet-matrix blends with a PI : PDMS ratio of 30 : 70 or 70 : 30 and interfacially localized ODA-GO stabilizer loadings from 0.1% to 1%. Blends were examined by optical microscopy and rheometry. Both blends show typical droplet-matrix morphology with stabilized round drops that do not stick together. With the addition of ODA-GO, smaller drops were observed in PI-continuous blends as compared to the PDMS-continuous blends suggesting that the effects of particles are not symmetric in the two cases. At sufficiently high ODA-GO loadings, flow-induced coalescence is suppressed almost completely. Dynamic oscillatory rheology broadly confirms the morphological observations. Specifically, all the blends show an interfacial relaxation process that is distinct from the bulk viscoelasticity, and the dependence of this process on GO content and flow conditions confirms the compatibilizing effect of the ODA-GO. This work provides a strategy for interfacially-compatibilizated polymer blends with specific properties for practical applications.