This article describes the dispersed-phase toughening of thermoset matrices by the development of multiphase-structure thermosetting matrices using rubber and/or thermoplastic materials. It discusses two main methods for manufacturing prepregs, namely, single-pass impregnation and double-pass impregnation. The article illustrates reflected-light optical microscopy techniques to evaluate the morphology of thermoplastic materials for determining the material quality and correlating key microstructural features with material performance.