Multilayer foils like PET-PE food trays are quite challenging to recycle efficiently. The different polymers are physically attached to one another and cannot be separated into mono-streams of PET and PE. The material must be recycled as a blend. This blend, composed of PET and PE, is inherently immiscible, leading to inferior mechanical properties. Consequently, these materials are currently not recycled mechanically. At best, they go to energy recovery. At worst, to landfill. Effective compatibilization of the PET and PE phases is key to making these materials industrially recyclable. In a first section, this paper discusses the effective compatibilization of a 80:20 virgin PET:PE blend by adding different percentages of a compatibilizing agent (CA) with grafted maleic anhydride (MA) as a functional group. Two different backbone structures are evaluated: a polyolefin elastomer (POE), which is expected to interact exclusively with the PE phase and a styrene ethylene butadiene styrene rubber (SEBS), which is expected to interact also with the PET phase through dipoles. Experimental validation include tensile, flexural and impact testing as well as physicochemical and morphological evaluation. In a second part, the transferability of these results from a virgin blend to an effective post-industrial recycled blend with the same 80:20 PET:PE composition is evaluated.