Convert Source Engine Model to blend

Download and install the latest version of Filestar.
Right click on one or more Mdl file(s) on your desktop and select Convert with Filestar.
Type convert to blend in the search box.
Press Convert.

What is the difference between Source Engine Model and .blend?

Name: Source Engine Model; Blender
Extension: .mdl; .blend
Format: Binary
Category: 3D; 3D
Developer: Valve; Blender
Description: Blend is a 3D format developed by the Blender 3D modelling application to describe 3D scenes. The file may also contain sound, scenes, and effects used in animation.
MIME Type: application/octet-stream; application/x-blender
Wikipedia: .blend on Wikipedia

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