The nonlinear viscoelastic properties of PLA/PCL blends with and without clay (montmorillonite, MMT) under large amplitude oscillatory shear (LAOS) flow were investigated. The G' and G'' as a function of strain amplitude, Lissajous plots and FT-rheology methods were used to interpret nonlinear behavior of PLA/PCL blends with and without MMT. Additionally, scanning electron microscopy (SEM) images of PLA/PCL with MMT blends were taken to investigate the effects of clay on the internal structure of the PLA/PCL blends. A relationship between morphological changes and linear and nonlinear rheological properties was observed. SEM image analysis revealed that clay acted as a compatibilizer and then reduced the size of droplets in the PCL domain of the PLA matrix. As a result, nonlinear properties sensitively reflect morphological changes with increasing MMT amount. The nonlinear rheological properties of PLA/ PCL/MMT/metallocene-LLDPE (mLLDPE) were also investigated when mLLDPE was used as an impact modifier to improve mechanical properties, and the nonlinear rheological properties of PLA/PCL/MMT and PLA/PCL/MMT/mLLDPE were also compared.