In this experiment, polycaprolactone (PCL) toughened poly (cyclic butylene terephthalate) (pCBT) composites were prepared by in-situ polymerization through vacuum molding process. The effect of the catalyst content, polymerization temperature and the content of PCL on the performance of PCL/pCBT composites was discussed. The results show that the crystallinity of composites with 7.5 wt % polycaprolactone is lower, the elongation at break is higher and the toughness has been improved compared with pure pCBT. The mechanical properties obtain the evident improvement at 210oC. Catalyst amount is 0.5 wt %, the copolymers have the high molecular weight and their toughness is the best.