In this project, Polylactic acid (PLA)/Ethylene vinyl acetate (EVA) copolymer blends were prepared by melt mixing. To enhance the compatibility of the polymers, a reactive terpolymer was used in the formulation. The effects of nanoclay Cloisite 30B on morphological, rheological, and thermal properties were explored. Study on morphology showed an inherent immiscibility of two constituent polymers. An intercalated morphology of nanoparticles inside the matrix (PLA) was observed while at the interface of two phases, an exfoliated morphology was discernible. Also, it was found that on increasing nanoclay content, the dispersed phase size as well as size distribution was reduced. Nanoclay was established to play stronger compatibilizing role compared with that of the compatibilizer. The simultaneous use of compatibilizer and nanoclay rendered the maximum level of influence on morphology. Rheological measurements revealed the emergence of terminal zone at low frequencies due to the presence of the nanoclay moieties. The compatibilizer however had no considerable effect on rheological behavior when compared with nanoclay. Analyses on thermal characteristics demonstrated that PLA remained amorphous on which even additives had no influence. This was ascribed to the very low mobility of the polymeric chains. However, on heating, PLA showed cold crystallization, where nanoparticles imposed positive nucleating role. The presence of nanoparticles in too much concentration impeded crystallization due to the stiffening effect. EVA was found to crystallize under cooling where the higher the cooling rate, the lower the crystallization onset temperature was. The introduction of the compatibilizer had no particular effect on thermal properties of the system because the compatibilizer preferred to place inside the matrix rather than at the interface. The addition of the nanoclay ingredient to the blend contributed to the crystallization ability of the chains because of the nucleating role. Keywords: Blend, Polylactic acid, Ethylene vinyl acetate, rheology, morphology, thermal properties, compatibilizer, nanocomposite