Biodegradable poly(butylene adipate‐co‐terephthalate) (PBAT) has excellent processing and mechanical properties. However, PBAT is expensive and its relatively slow biodegradation rate limits its wide application. In this paper, PBAT/thermoplastic starch (TPS) complexes were prepared by a two‐step process using epoxidized soybean oil (ESO) as a reactive compatibilizer. The compatibilizing ability of ESO was investigated by FT‐IR and GPC. Results showed ESO could form a chemical bonding interface with PBAT and TPS. Compared to PBAT/TPS, tensile strength, elongation at break and tear strength of PBAT/TPS/5%ESO composites increased by 84%, 53%, and 68%, respectively. The optical transparency of the PBAT/TPS/5%ESO film improved by 6% compared to the PABT/TPS film. This research offers a viable solution for the preparation of high performance, green PBAT/TPS complexes.