Polycarbonate (PC) and its blends are important thermoplastic engineering polymers due to great processing, thermal, mechanical and optical properties. It has a wide range of applications such as home appliances, automotive and electronics. Flame resistance grades are highly used in TV and small house appliances applications because of both glossy surface and flame resistance properties. In recent years, plastic waste issue, which has become a critical environmental problem, has led to a focus on studies about innovative recycling technologies. Primary motivation of this study, is to blend recycled poly(ethylene terephthalate) (r-PET) with PC (70/30 wt.%) and phosphorus based flame retardants to obtain high mechanical and flame retardant properties. In order to improve the mechanical properties, 1%, 3% and 5% glycidyl methacrylate compatibilizer were used in blend respectively. PC/r-PET blends were prepared by using a co-rotating twin screw extruder and samples were shaped by injection molding. UL94 and glow wire test (GWT) for flammability properties and mechanical tests were performed. In order to analyze compatibilizer effects on morphology, SEM analyses were carried out, and additionally, characterization tests were performed to reveal the thermal properties. The dynamic mechanical analysis was also conducted. According to the results, compatibilizer usage increased the impact strength up to 50% while obtaining V0 rating at UL94 flammability tests. DSC results and SEM analyses show that PC/r-PET blend has a partially miscible morphology at this blend ratio. Phosphor-based flame retardant additive affected the morphology and achievement of homogeneous structure.