AbstractThis study aimed to optimize the compatibility and performance of PLA/PC blends by investigating the effects of Cloisite 20A nanoclay (NC) and Joncryl chain extender (CE). PLA/PC blends with varying NC and CE loadings were prepared, and the optimal formulation was identified. The optimal NC and CE content were then used to produce PLA/PC blends with varying PC ratios. The test specimens were produced by mixing the mixture in a twin‐screw micro compounder and subsequent injection molding into dog bone specimens to investigate the thermal, mechanical, and morphological properties of the blends. Scanning electron microscopy and dynamic mechanical analysis confirmed the immiscibility of the unmodified blend, but significant improvements in blend morphology were observed with high NC/CE ratios. The presence of NC/CE resulted in reduced droplet size of dispersed PC phase and a new intermediate glass transition temperature (Tg) in DMA, suggesting partial miscibility. The highest thermal stability improvement was achieved with 5 wt% NC alone or a combination of 5 wt% NC and 1 wt% CE. Composites containing NC/CE showed the most significant improvements in composite properties, demonstrating their effectiveness as compatibilizers and improved compatibility in PLA/PC blends. These results indicate that the use of NC/CE is a promising method for expanding the applicability of PLA/PC blends.