N,N′‐Ethylenebis(12‐hydroxystearamide) (EBH), an aliphatic diamide organic compound with environmental friendliness, was selected as an effective nucleating agent to be incorporated into poly(1,4‐butylene adipate) (PBA) polyester. EBH increased the crystallization temperature, crystallinity, crystal density and thermal stability, and shortened the crystallization time of PBA. EBH slowed down the critical temperature of the PBA α‐crystal, accelerated the β‐to‐α phase transition rate and tailored the polymorphic crystalline structure of the PBA probably via the interfacial interaction and/or crystal lattice matching between PBA and EBH. In the presence of EBH, the degradation rate of PBA decreased. The mechanisms of the nucleation, manipulation of the crystal type, accelerated β‐to‐α phase transition, enhanced thermal stability and decreased enzymatic degradation rate of PBA are proposed and discussed in detail. © 2018 Society of Chemical Industry