Rubber-modified styrene resins with excellent impact resistance are prepared by formulating a feed from a styrene-based monomer, or a mixture thereof with comonomers and high-viscosity rubber, an organic peroxide, and, if necessary, all inert organic solvent, preheating and continuously supplying the feed to one end of a plug flow type reactor equipped with an agitator, performing the preliminary polymerization to a conversion sufficiently high for the transformation of the rubber in the feed into particles while controlling the weight average particle diameter of the rubber particles to 0.8 to 5 .mu.m, withdrawing the prepolymerized feed from the other end of the reactor, and supplying it to a following plug flow type reactor for continuous enhancement of tile conversion.