Research and development in biodegradable polymers has received increased attention in recent years because of their wide application in environmental friendly packaging and automotive applications. Poly(lactic acid) (PLA) is one of the well-known materials due to its natural biodegradability and availability from renewable resources. Full-scale commercial production of PLA is now a reality; the cost of production has been reduced significantly and therefore, PLA is being used as a packaging material nowadays. However, PLA is a rigid and brittle material in ambient temperature, therefore needs to be plasticized in order to have a tough material. In this study, the plasticizing efficiency of algae oil based ester for PLA was investigated for the first time in the literature. Butanol was used for the esterification reactions for this purpose. Melt-compounding was used to prepare the compounds. Mechanical, thermal, rheological and morphological properties of PLA/algae based ester blends were investigated.