The first example of a living carbocationic polymerization in emulsion is presented. Isobutylene was copolymerized with alloocimene, a tri-terpene. AFM, TEM, and DSC analysis demonstrated a phase separated nanostructure. NMR and TGA revealed the presence of a diblock structure in the material that displayed thermoplastic elastomeric properties with 6 MPa tensile strength and 1000% strain at break. Triblocks were also prepared by sequential monomer addition, yielding 12 MPa tensile strength with 640% strain at break.