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Abstract: Poly(lactic acid) (PLA) and poly(butylene adipate-co-terephthalate) (PBAT) are biodegradable aliphatic polyesters, which being semicrystalline and thermoplastic can be processed by conventional methods. Their blends give interesting materials for industrial packaging applications, due to their increased ductility as PBAT content increases. However, like many aliphatic polyesters, the PLA matrix degrades upon melt processing thus affecting the thermo-mechanical features of the blended material. In this work, we studied the effect of processing at high temperature on the molecular weight distribution, morphology, and thermo-mechanical properties of both homopolymers, as well as the PLA/PBAT 75/25 blend. Notably, different processing conditions were adopted in terms of temperature (range 150–200°C) and other relevant processing parameters (moisture removal and nitrogen atmosphere). Analysis of PLA/PBAT blends indicated that intermolecular chain reactions took place under strong degradative conditions of PLA, yielding PLA/PBAT mixed chains (copolymers). Increasing amounts of copolymers resulted in improved phase dispersion and increased ductility, as SEM and mechanical tests indicated. Conversely, reduced PLA degradation with less copolymer formation, afforded higher modulus materials, owing to poorer dispersion of the soft phase (PBAT) into the PLA matrix. [Copyright &y& Elsevier]