Equilibrium colloid stability measurements with nonionic surfactant (CI2Es) stabilised polybutyl methacrylate (PBMA) latex dispersions indicate a sudden temperature induced destabilisation coinciding with the glass transition temperature, Tg, of the polymer. In control experiments with polystyrene latex particles of similar size, for which Tg was not approached, the flocculation temperature was significantly higher. The effect is interpreted in terms of a reduced adsorbed layer thickness above Tg caused by mixing of part of the surfactant molecule with the polymer. This interpretation is supported by DSC, elastic modulus and mechanical damping measurements on films made from dispersions of the same latex containing commercial nonionic surfactants. These measurements indicate a shift in Tg in the presence of surfactant consistent with partial penetration of the polymer surface by the surfactant. In addition, C12Es adsorption measurements show increased adsorption (or absorption) onto PBMA above Tg which is irreversible on both dilution and temperature reduction.