There is growing interest in biodegradable polymers (BP), in particular poly(butylene adipate‐co‐terephthalate) (PBAT), due to environmental problems associated with the disposal of non‐biodegradable polymers into the environment. However, high production cost and low thermo‐mechanical properties restrict the use of this sustainable material, making its biodegradability advantageous only when it is decisively required. The addition of different compositions of monomers and selective addition of natural fillers have been reported as alternatives to develop more accessible PBAT‐based bioplastics with performance that could match or even exceed that of the most widely used commodity plastics. This review explores the recent progress of the applications and biodegradation of PBAT. The addition of natural fillers and its effect on the final performance of the PBAT‐based composites is also reported with respect to improving the properties of composites. The advance of polymerization reaction engineering combined with sustainable trend offers great opportunities for innovative green chemical manufacturing. POLYM. ENG. SCI., 59:E7–E15, 2019. © 2017 Society of Plastics Engineers