The growth of biodegradable plastics, which are safely and efficiently eliminated in solid or in compost, has become gradually important to reduce the effect on the environment. One of the typical biodegradable polymers that show no contrary effects on the environment is poly(butylene adipate-co-terephatalate) (PBAT). However, the usage of PBAT is limited because of its high price [1]. Therefor many researches focus on to reduce its price by blending PBAT with starch, a natural polymer. Thermoplastic starch (TPS) is obtained in presence of plasticizers to break the strong hydrogen bonding between the starches. However, the difference in hydrophilicity between starch and PBAT makes this blend incompatible with poor properties [2]. On the other hand, the oxidized starch obtained from the reaction of starch in presence of oxidizing agents may help the hydrophilicity between two components [3]. The aim of this study is to investigate the comparison of the effect of oxidized starch on the properties of TPS/PBAT blends in the presence of styrene-acrylic multi-epoxidized polymeric compatibilizer. Blends were obtained by laboratory twin-screw Xplore microcompounder and were characterized by tensile, impact and thermal tests. The rheological and morphological properties were also investigated. The results showed that OTPS/PBAT blends have better effects on the impact strength and elongation at break. According to thermal and rheological results, OTPS yielded comparable results with TPS. [1] J. B. Olivato, M. V. E. Grossmann, F. Yamashita, D. Eiras, L. A. Pessan, Carbohydrate Polymer, 87 (2012), 2614-2618. [2] A.R. Rahmat, W.A.W.A. Rahman, L.T. Sin, A.A. Yusuf, Material Science and Engineering C 29, 2370-2377 (2009). [3] P. Forssell, A. Hamunen, K. Autio, T. Suortti, K. Poutanen, Starch/Strake, 47 (1995), 371-377.