Solid-state shear pulverization (SSSP) is an innovative processing technique that has proven to effectively disperse nanoscale structural entities to achieve compatibilized polymer blends and exfoliated polymer nanocomposites. The SSSP apparatus, which is a modified twin-screw extruder, can continuously process polymer blends and nanocomposites without the use of heat, solvent, or chemical modifiers. For an insight into this unconventional process, the effects of different processing parameters are evaluated using several polystyrene-based blends as base systems. The manner by which the materials deform, mix, and disperse depend strongly on the type of polymers as well as the configuration of the mixing and pulverization zones in the SSSP apparatus. Such key processing variables as residence time and throughput are also considered and compared with typical values in conventional melt extrusion.