In this study, we aimed to modify chitosan (CS) as a novel compatible bio-based nanofiller for improving the compatibility including the thermal and mechanical properties of poly(lactic acid) (PLA). The modification of CS with poly(ethylene glycol) methyl ether methacrylate (PEGMA) was done by radiation-induced graft copolymerization. The effects of the dose rate, irradiation dose, and PEGMA concentration on the degree of grating (DG) were investigated. The chemical structure, packing structure, thermal stability, particle morphology, and size of the PEGMA-graft-chitosan nanoparticles (PEGMA-graft-CSNPs) were characterized by fourier transform infrared spectroscopy, X-ray diffraction, thermogravimetric analysis, and transmission electron microscopy. The compatibility of the PEGMA-graft-CSNP/PLA blends was also assessed by field emission scanning electron microscopy. The PEGMAgraft-CSNPs exhibited a spherical shape with the DG and particle sizes in the ranges of 3-145% and 35-104 nm, respectively. The PEGMA-graft-CSNPs showed compatible with PLA because of the grafted PEGMA segment. A model case study of the PEGMA-graft-CSNP/PLA blend demonstrated the improvement not only the compatibility but also thermal stability flexibility, and ductility of PLA.