Development of environmentally sound polymer composite materials with controlled biodegradation is becoming increasingly important due to global solid waste problem. On this score, polylactide (PLA) has gained certain attention due to its high modulus, strength and origin from renewable resources [1]. Brittleness of PLA, however, constitutes a serious problem to extend application range of the polymer, limiting also applicability of PLA for manufacturing of industrially attractive high-performance and highly biobased composite materials, reinforced with biomass derived lignocellulosic fibres. A solution to prevent this problem is toughening of PLA by means of blending with other biodegradable polymer, such as polybutylene adipate terephthalate (PBAT) [2]. PLA/PBAT blends could form a promising matrix for further development of perspective highperformance composite materials for broad range of engineering applications. Consequently, in this research the effect of different concentrations of PBAT on PLA matrix is evaluated by analysing structural, calorimetric, thermogravimetric and mechanical properties of various PLA/PBAT blends.