For the past decade, cornstarch-based poly(lactic acid) (PLA) has gained increasing interest. PLA is biodegradable and possesses high strength and stiffness. However, the inherent brittleness of PLA has posed a large limitation for its wide applications. To address this major drawback, various strategies, mainly including addition of plasticizers, copolymerization, and melt blending with flexible polymers or rubbers, have been extensively investigated in the literature. Compared to the former, melt blending appears more industrially practical due to the cost-effectiveness. This chapter introduces our efforts to improve the toughness of PLA in terms of non-reactive and reactive melt blending, respectively. Non-reactive blending employed a flexible biodegradable polymer (polybutylene adipate-co-terephthalate), rigid inorganic nanofillers (organically modified montmorillonite and nanosized calcium carbonate), or their combination to modify the performance of PLA materials. In the case of reactive melt blending, an epoxy-containing elastomer and a zinc ionomer were utilized to toughen the PLA materials. Although non-reactive blending gave rise to remarkable enhancement in ductility, reactive blending was shown to be more effective in achieving high impact toughness of PLA.