Biobased polymers have been widely studied as substitutes for petroleum-based materials. Among these polymers, polylactide (PLA) has gained commercial acceptance in thermoformed and blow molded packaging applications because of its transparency, high tensile modulus and strength and its cost competitiveness. However, the low impact strength of PLA and its poor temperature resistance have prevented its widespread use in many industrial applications. The present study focuses on the improvement of impact properties and particularly on the interaction between crystallinity development and mechanical properties of PLA-based blends. The PLA was toughened by the addition of a random linear ether-amide copolymer (Pebax 3533TM) that acted as an impact modifier. A random copolymer of ethylene, methyl-methacrylate and glycidyl-methacrylate (Lotader AX8900TM) was also used to reactively compatibilize the ether-amide copolymer with the PLA matrix. The rheological, mechanical and thermal properties of quenched and annealed blends and their morphology were investigated. In terms of melt rheology, the blends were investigated in oscillatory shear to determine if the impact modifiers could increase the melt elasticity of the material. The Izod impact resistance and tensile properties were measured using standard testing protocols. The thermal resistance of the annealed blends was examined using dynamic mechanical analysis. A micron-size dispersion of the impact modifier was achieved in the presence of the reactive compatibilizer. Significantly improved impact strength was found with as low as 10% of additives. Annealed samples showed the highest impact strength with values attaining 80 kJ/m².