Increasing environmental awareness has encouraged a lot of researchers to progress to biodegradable materials. Amongst biodegradable polymeric materials, starch is one of the most studied biopolymer; however, thermoplastic starch materials possess poor mechanical properties and suffer from water sensitivity. To overcome these challenges, butyl-etherified starch (BES) types were melt processed with poly (butylene succinate adipate) (PBSA) respectively in the presence of hydrophilic silica particles and maleic anhydride (MA). Results indicated that butyl-etherification of starch improved compatibility while highly branched amylopectin structures of BES increased miscibility with PBSA and properties of BES improved with the increasing PBSA content. Silica particles preferentially localized inside the dispersed BES phase and resulted in increased viscosity which led to limited improvement in droplet breakup. Furthermore, the presence of MA led to hydrolysis of BES phase resulting in reduced molecular weight, viscosity and inadequate improvement in mechanical properties. Therefore, this study is expected to shed some light into the use of butyl-etherified starch blends with PBSA for packaging applications and urge interest for further research in the area of reactive extrusion with different filler materials.