Biodegradable polymer blends consisting of poly(L-lactic acid) (PLLA) and poly(butylene succinate) (PBS) were prepared in the presence of dicumyl peroxide (DCP). The effects of DCP content on the mechanical properties, thermal and rheological behavior, phase morphology as well as the toughening mechanism of the blends were investigated. The notched Izod impact strength of PLLA/PBS (80/20) blend significantly increased after the addition of 0.05-0.2 phr DCP, but the strength and modulus monotonically decreased with increasing DCP content. PBS acted as a nucleating agent at the environmental temperature below its melting temperature and accelerated the crystallization rate of PLLA but had little effect on its final degree of crystallinity. The degree of crystallinity of PBS and the cold crystallization ability of PLLA gradually reduced with increasing DCP content. The addition of DCP induced an increase in viscosity of the blends at low frequencies as well as finer dispersion of PBS particles and better interfacial adhesion between PLLA and PBS, indicating the in situ compatibilization occurred between the two components. The optical clarity of PLLA/PBS blends was significantly improved after the addition of DCP, which was in accordance with the crystallization behavior and phase structure of the blends. POLYM. ENG. SCI., 49:26-33, 2009. (C) 2008 Society of Plastics Engineers