Blends of amorphous polylactide (PLA) as the matrix with 25 wt% poly[(butylene adipate)-co-terphthalate] (PBAT) and 1 wt% and 5 wt% nanoclay Cloisite 30B (C30B) were prepared using a batch mixer. Three different processing routes were used: (1) direct mixing of all three components, (2) mixing C30B and PLA followed by mixing with PBAT, and (3) mixing C30B and PBAT followed by mixing with PLA. Droplet coalescence was investigated by applying shear flow of 0.01 s-1 at a fixed strain of 60. The TEM images of the blends with 5 wt% C30Bs elucidated that, for the three differently prepared batches, the C30Bs were, respectively, located: (1) in the PLA matrix and at the PLA-PBAT interfaces, (2) in the PLA matrix and slightly at the PLA-PBAT interfaces, and (3) at the PLA-PBAT interfaces. The PBAT droplet diameters in these three batches were calculated as 0.65, 0.75, and 0.35 μm, respectively. As seen, the PBAT droplets were smaller in the blend prepared using mixing route (3), mainly due to the viscosity ratio of PLA and PBAT/ C30B closer to 1. However, after applying 0.01 s-1 shearing, the PBAT droplet coalescence was only observed in the blend prepared using mixing route (3) where the droplet diameter increased to 0.50 μm. According to the TEM images, this was most likely because the C30B started to migrate into the PLA matrix and thereby this facilitated the droplets’ coalescence. For the first two blends (mixing routes 1 and 2), C30Bs at the interfaces prevented coalescence. We also investigated the morphological properties of PLA-PBAT blends containing 1 wt% C30B through the 3 mixing routes. It was observed that C30Bs were located at the interfaces of PLA-PBAT through all mixing routes and the PBAT droplet sizes were very similar and no coalescence was observed under shear. In all of the cases the viscoelastic responses were mainly affected by the degradation of the PLA matrix during the experiments and this was more pronounced in the blends containing 5 wt% C30Bs.