The enhancements in the properties of the recycled blends are concerned as the major highlight in the field of polymer recycling and technology. The materials containing polar functional groups are generally employed for enhancing the mechanical and thermal properties of the recycled blends. In this study, epoxidized soybean oil (ESBO), a bio-derived material, was considered as the toughening agent for the modification of the recycled blends made of poly(vinyl chloride) and poly(methyl methacrylate). A series of concentrations (3-12 wt%) of ESBO have been incorporated into the recycled blend matrix via the melt blending method. Further, the formulated recycled blends were analysed for their mechanical, rheological, thermal, flammability and morphological characteristics. Among them, the modified blend with 9% ESBO has been indicated a significant improvement in the fracture toughness parameters. The scanning electron micrographs are clearly indicating the changes in the microstructural properties of the recycled blend after the integration of ESBO. Moreover, dynamic mechanical analysis indicated changes in the glass transition values which resulted from the improved interfacial adhesions and compatibility of the recycled blend matrix.