Poly(lactic acid)/poly(butylene terephthalate) (PLA/PBT) blends with 3, 5, and 10 wt % of PBT were produced in a twinscrew extruder, with the addition of ethylene-glycidyl methacrylate copolymer as compatibilizer. An uncompatibilized PLA/PBT blend with 5 wt % of PBT was prepared for comparison studies. The epoxy reactive groups in the compatibilizer allowed modification of the interfacial tension in the blends and reduced the PBT dimensions. The crystallinity of the blends was studied, and its influence on mechanical properties was analyzed. Tensile tests showed an increase in strain at break from 3% for neat PLA to 49% for PLA with 3 wt % PBT, while the tensile modulus dropped from 3.59 GPa to 3.35 GPa for the same samples. Izod results showed a transition from a brittle behavior of PLA to a ductile one for compatibilized blends. These results indicate that the nanometer-size dispersed phase was effective in changing the deformation behavior of the matrix without a significant loss of modulus. V C 2017 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2018, 135, 45951.