Blends of 70 wt% amorphous polylactide (PLA) with 25 wt% poly[(butylene adipate)-co-terphthalate] (PBAT) and 5 wt% nanoclay Cloisite 30B (C30B) were prepared using a Brabender 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. X-ray diffraction (XRD) and transmission electron microscopy (TEM) were used to investigate the C30B dispersion quality. Scanning electron microscopy (SEM) and TEM were also utilized to analyze the blend morphology. Small amplitude oscillatory shear (SAOS) tests were conducted to investigate the viscoelastic properties of the blends. PLA/5 wt% C30B and PBAT/5 wt% C30B nanocomposites were also prepared to separately explore the interaction of C30B with each polymer. Incorporation of C30B raised the complex viscosity of PBAT by up to 80%, whereas it reduced the viscosity of PLA (due to PLA degradation). The possible interactions between C30B and PBAT were examined using Fourier transform infrared spectroscopy (FTIR). The XRD and TEM results also showed that the C30B had better compatibility with PLA. The TEM images of the blends 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 (3) at the PLA-PBAT interfaces. Also, the PBAT droplets were smaller (~ 0.3 μm) in the blend prepared using mixing route (3), mainly due to the viscosity ratio of PLA and PBAT/ C30B closer to 1. Moreover, this blend system showed larger complex viscosity and storage modulus, which may be due to: the finer PBAT droplets; C30B localization at the PLA-PBAT interfaces; less degradation of PLA; and/or the increased PBAT viscosity. The Palierne model was also used to predict, the blend morphology (i.e., droplet size) after applying various shearing.