Blends between Novatein thermoplastic protein and polylactic acid (PLA) have been prepared by reactive extrusion using itaconic anhydride grafted PLA. At equal proportions of Novatein and PLA, the absence of a compatibilizer formed a dispersed phase morphology of Novatein in PLA and the incorporation of compatibilizer formed a co-continuous morphology. Incorporating PLA in Novatein can improve the tensile strength of Novatein by 42% and the impact strength by 36% at an equal proportion blend (50/50) in the presence of a compatibilizer. Thermal analysis revealed that 50/50 was the phase inversion point, above and below this composition the material behaved similarly. The effect of compatibilizer was evident in wide-angle X-ray scattering. In the absence of compatibilizer three phases were detected: crystalline Novatein, amorphous Novatein, and amorphous PLA phases. With compatibilizer, the blend was moving towards two phases: crystalline Novatein, and an amorphous blend of Novatein and PLA. Itaconic anhydride grafted PLA improved miscibility between Novatein and PLA, and its use can potentially lead to the production of Novatein/PLA foams.