This study aimed to improve the brittleness and thermal stability of poly(lactic acid) (PLA) by inclusion of poly(butylene succinate) (PBS) and microcrystalline cellulose (MCC). Of the three PLA/PBS blends (10, 30 and 50 wt% PBS) evaluated, the 70/30 wt% blend exhibited the highest impact strength and elongation at break, but a lower thermal stability compared to that of the pure PLA. Scanning electron microscopy analysis confirmed the better compatibility of this 70/30 PLA/PBS blend. This blend was further filled with MCC. Based on thermogravimetric analysis, the thermal stability of the 70/30 PLA/PBS blend was improved by the addition of MCC [optimal at five parts by weight per hundred (phr)] and further still by the addition of the chain extender, Joncryl TM , at 0.5 phr. The 70/30/5/0.5 PLA/PBS/MCC/Joncryl TM composite exhibited the highest impact strength, while the elongation at break was acceptable.