Thermoplastic starch (TPS)/poly (lactic acid) (PLA) blend and thermoplastic starch (TPS)/poly (lactic acid) (PLA)/poly (butylene adipate-co-terephthalate) (PBAT) blend were prepared by melt blending method. PLA grafted with maleic anhydride (PLA-g-MA) was used as a compatibilizer to improve the compatibility of the blends. As TPS was incorporated into PLA, elongation at break was increased while tensile strength, tensile modulus, and impact strength were decreased. Tensile properties and impact properties of TPS/PLA blend were improved with adding PLA-g-MA indicating the enhancement of interfacial adhesion between PLA and TPS. With increasing PBAT content, elongation at break and impact strength of TPS/PLA blends were improved. The addition of TPS decreased glass transition temperature (Tg), crystallization temperature (Tc), and melting temperature (Tm) of PLA. Tgand Tcof TPS/PLA blend were decreased by incorporating PLA-g-MA. However, the presence of PBAT reduced Tcof TPS/PLA blend. Thermal properties of TPS/PLA/PBAT blends did not change with increasing PBAT content. SEM micrographs revealed that the compatibilized TPS/PLA blends exhibited finer morphology when compared to the uncompatibilized TPS/PLA blend.