Bio-composites consisting of poly(butylene adipate-co-terephthalate) (PBAT), poly(propylene carbonate) (PPC) and epoxy chain extender ADR 4468 were fabricated via melt blending using a torque rheometer. The relationship of the torque, melt viscosity, and molecular weight of the bio-composites was established via polymeric liquid theory to estimate the real-time chain extension reaction rate under different ADR contents. At the meantime, rheological behavior, thermal and mechanical properties, morphologies, gas barrier properties of the PBAT/PPC/ADR bio-composites were systematically characterized. The corresponding results revealed that the water vapor transmission rate (WVTR) reduced by 50% under 30 phr (parts per hundreds of resin) PPC content. The addition of ADR is beneficial to improve the mechanical properties, thermal stability and phase dispersion of PBAT/PPC without affecting the water barrier property. With 3 phr ADR, the tensile stress and elongation at break were increased from 19.5 MPa and 1184% to 26.9 MPa and 1443%, respectively. In addition, the data of the torque rheometer revealed that the chain extension reaction rate and the melt viscosity was increased with the increasing ADR content, but the reaction rate was reduced with the excessive viscosity.