Poly(L-lactic acid) (PLLA) was blended with poly(butylenesuccinate) (PBS) using a single-screw extruder to modify the poor characteristics of these polymers. Furthermore, when both polymers were blended, the graft copolymer that was synthesized by partially saponified poly(vinyl alcohol) (PSPVA) and epsilon-caprolactone (epsilon-CL) was used as a novel compatibilizer. The structure of the synthesized compatibilizer was determined by H-1 or C-13 NMR. From this result, the ring-opening polymerization of the epsilon-CL occurred at the hydroxyl group of PSPVA. The structures of the PLLA/PBS solvent-cast blended films could be observed via an optical microscope. From the optical microscopic observation, the structures of the solvent-cast blended films with the synthesized compatibilizer were more homogeneous than those of the solvent-cast blended films without the compatibilizer. The mechanical properties of the PLLA/PBS extruded blended films were determined by a tensile test. The result showed the tensile strength of the blended films with the synthesized compatibilizer was greater than that of the blended films without the compatibilizer.