To enhance the adhesion at the interface between polylactic acid (PLA) and local luffa fibers (LFs), and improve the properties of these fully biodegradable biocomposites, 10% of maleic anhydride grafted Styrene–ethylene–butylene–styrene (SEBS‐g‐MA) is added to act concomitantly as compatibilizer and toughening agent. PLA/LF and PLA/SEBS‐g‐MA/LF biocomposite materials were manufactured by melt mixing and then characterized by torque assessment, Fourier transform‐infrared spectroscopy (FTIR), differential scanning calorimetry (DSC), thermogravimetric analysis (TGA), scanning electron microscopy (SEM), and Izod impact test. In accordance with SEM observation, FTIR analysis and torque measurements, the interfacial bonding coupling the PLA chains to LF via SEBS backbones resulted from the chemical reactions between the functional groups of the composites components. This contributed in increasing notably the impact resistance and the thermal stability compared with the biocomposites without SEBS‐g‐MA. In addition, the improvement of the impact strength might be induced by the flexible ethylene‐butylene blocks, which act as impact absorbers due to their rubber‐like behavior.