Poly(ethylene-co-vinyl alcohol) (EVOH) was used as a compatibilizer to make blends of low-density polyethylene (LDPE) and plasticized starch (TS). The tensile properties and impact strength were measured and compared with those of neat LDPE. The morphology of the blend specimens, both fractured and unfractured, was observed by scanning electron microscopy. Comparison of the properties showed that the impact strength of the blend improves significantly by the addition of a compatibilizer even with a high TS loading of 40 and 50% (by weight). A high elongation at break almost matching that of neat polyethylene was also obtained. The blend morphology of the etched specimens revealed fine dispersion of the starch in the polyethylene matrix, while the fracture surface morphology clearly indicate that the failure of compatibilized blends occurs mainly by the ductile mode.