Polycaprolactone (PCL) has been blended with thermoplastic starch (TPS), prepared from regular corn starch and glycerol, in a twin-screw extruder. The rheological, mechanical. thermal and morphological properties of the blends were examined. Differential Scanning Calorimetry (DSC) and Scanning Electron Microscopy (SEM) studies revealed that PCL/TPS blends are thermodynamically immiscible. However, they form compatible blends as a result of the hydrogen bonding interaction between the ester carbonyl of PCL and the -OH groups on starch. Biodegradability of the blends increased with increasing TPS content. Dynamic viscoelastic measurements concluded that blends containing above 60-wt% TPS had higher storage and loss moduli than those of pure TPS and PCL. In addition, these blends had higher complex viscosities. (C) 2004 Society of Plastics Engineers.