A series of poly(lactic acid) (PLA), poly(butylene adipate-co-terephthalate) (PBAT) and glycidyl methacrylate- grafted poly(ethylene octene) (GPOE) blends and films with different GPOE content were prepared by melt blending and blowing film technique. The effect of GPOE on the rheological behavior, melt strength, crystallization behavior, crystallization morphology, miscibility, mechanical property, phase morphology, thermal stability and water vapor permeability were studied. The addition of GPOE improved melt rheological properties. Results of DSC showed that addition of GPOE encouraged the mobility of PLA molecular chains and enhanced crystalline ability. POM observations revealed that the addition of GPOE made the density of spherulite nucleation increase and the size of crystalline particles decrease. From DMA and SEM analysis, it was demonstrated that PLA/PBAT blend was an immiscible system and GPOE in the blend could improve compatibility between PLA and PBAT. Results of mechanical test showed that the PLA/PBAT/GPOE blends and films obtained had excellent mechanical properties. The elongation at break of 50/30/ 20 w/w/w PLA/PBAT/GPOE blend (477%) was higher by about 2.2 times than that of 70/30/0 w/w/w PLA/PBAT/ GPOE blend (220%). The tensile strength of all the PLA/PBAT/GPOE blends exceeded 31 MPa. The tensile strength reached 32.9MPa (MD) and 22.5MPa (TD), the elongation at break exceeded 210% and tear strength exceeded 140 kN/m for 50/30/20 w/w/w PLA/PBAT/GPOE film. With increasing GPOE content, thermal stability and water vapor barrier property also improved.