Melt blending of linear low density polyethylene (LLDPE) and polylactide (PLLA) was performed in an extrusion mixer with post extrusion blown film attachment with and without compatibilizer-grafted low density polyethylene maleic anhydride. The blend compositions were optimized for tensile properties as per ASTM D 882-91. Based on this, LLDPE 80 (80 wt% LLDPE & 20 wt% PLLA) and M-g-L 80/4 (80 wt% LLDPE & 20 wt% PLLA and 4 parts compatibilizer per hundred parts of resin) were found to be an optimum composition. FTIR reveals that the presence of compatibilizer shifts carbonyl peak hence some increase in interaction between LLDPE and PLLA. Morphological characteristics of the fracture surface of with and without compatibilizer blends were examined by scanning electron microscopy. It shows that use of compatibilizer enhances the dispersions of PLLA in LLDPE matrix. Thermogravimetric (TG) analysis of blends shows the M-g-L 80/4 blend has higher thermal stability among studied blends. The degradation study under different pH of soil compost gives that in alkaline condition and the presence of compatibilizer was favorable for degradation. This blend may be used for packaging application.