The widespread use of poly(lactic acid) (PLA) from packaging to engineering applications seems to follow the current global trend. The development of high-performance PLA-based blends has led to the commercial introduction of various PLA-based resins with excellent thermomechanical properties. The reason for this is the progress in the field of major PLA limitations such as low thermal resistance and poor impact strength. The main purpose of using biobased polymers in polymer blends is to increase the share of renewable raw materials in the final product rather than its possible biodegradation. However, in the case of engineering applications, the focus is on achieving the required properties rather than maximizing the percentage of biopolymer. The presented review article discusses the current strategies to optimize the balance of the key features such as stiffness, toughness, and heat resistance of PLA-based blends. Improving of these properties requires molecular structural changes, which together with morphology, crystallinity, and the influence of the processing conditions are the main subjects of this article. The latest research in this field clearly indicates the high potential of using PLA-based materials in highly demanding applications. In the case of impact strength modification, it is possible to obtain values close to 800 J/m, which is a value comparable to polycarbonate. Significant improvement can also be confirmed for thermal resistance results, where heat deflection temperatures for selected types of PLA blends can reach even 130 °C after modification. The modification strategies discussed in this article confirm that a properly conducted process of selecting the blend components and the conditions of the processing technique allows for revealing the potential of PLA as an engineering plastic.