Using dynamic light scattering, mechanical rheometry, and visual observation, the static wetting behavior of PDMS-grafted silica spheres (PDMS-g-silica) in PDMS melts is related to their rheology. A phase diagram is mapped out for a constant grafted chain length as a function of grafting density and free polymer chain length. The transition between stable and aggregated regions is determined optically and with dynamic light scattering. It is associated with a first-order wetting transition. In the stable region Newtonian behavior is observed for semidilute suspensions. The hydrodynamic brush thicknesses, deduced from viscosity measurements, correspond closely to values obtained from self-consistent field calculations for the various parameter values. At the transition, the brush collapses suddenly and shear-thinning and thixotropy appear. The rheology indicates a degree of aggregation that increases with increasing length of the free polymer, as suggested by the theory.