PLA/PCL and PLA/PCL/LTI blends were developed to improve the fracture properties of biodegradable PLA. LTI was blended to improve the miscibility of PLA and PCL. It was shown that the fracture toughness values were dramatically increased due to LTI addition. SEM results also exhibited that PCL spherulites decreases due to LTI addition and therefore, void formation is reduced and local stress concentration is suppressed, resulting in the improvement of the toughness values. The improved miscibility is also closely related to the enhancement of ductile deformation; as a result, the fracture toughness is increased.