Poly(butylene succinate) (PBS) is considered a worthy biodegradable thermoplastic polyester for blending with other biopolymers especially with Poly(lactic acid) (PLA) to overcome its inadequacies in mechanical and thermal properties. Binary blends of PLA and PBS revealed that they are immiscible to each other. Therefore simple blends yield poor physical properties, and compatibilization is needed. In this study, PLA and PBS were compatabilized by adding mono- or multi- epoxide polyhedral silsesquioxane (POSS) using melt blending. The blends were prepared at different weight ratios having different amount of compatiblizers. It was analysed by scanning electron microscopy that the Glycidyl POSS influenced the interfacial adhesion and properties of PLA and PBS blends. Noticeable improvements in mechanical properties were revealed by tensile and impact test results.Tensile strength, Young’s modulus and impact strength were increased when epoxy-POSS types were added upto 3 wt % into ternary blends, but further increasing POSS concentrations iresulted in lower values.FTIR analysis showed a strong interaction between the Epoxy functional groups and the end groups of PBS or PLA.Thermaland thermomechanical properties were analysed using differential scanning calorimetry (DSC) and DMA, respectively. The shifts in glass transition temperatures of PLA phase towards lower values assessed via DSCandDMAconfirmed the enhanced compatability of PLA and PBS.