Poly(lactic acid) (PLA) blended with poly(B-caprolactone) (PCL) was prepared with various reactive processing agents. Four isocyanates-lysine triisocyanate (LTI); lysine diisocyanate (LDI); 1,3,5-tris(6-isocyanatohexyl)-1,3,5-triazinane-2,4,6-trione (Duranate TPA-100); 1,3,5-tris(6-isocyanatohexyl)biuret (Duranate 24A-100)and an industrial epoxide-trimethylolpropane triglycidyl ether (Epiclon 725)-were used as reactive processing agents. PLA/PCL blended in the presence of LTI had the highest torque in a mixer test. The test specimens were prepared by injection molding. The mechanical properties, thermal properties, molecular weight, melt viscosity, phase behavior, and morphology were investigated using tensile strength, impact strength, differential scanning calorimetry, melt mass-flow rate measurements, capillary rheometery, gel permeation chromatography, laser scanning confocal microscopy (LSCM), and visco-elasticity atomic force microscopy (VE-AFM). The impact strength increased considerably at 20 wt% PCL. The nominal tensile strain of PLA/PCL blended with LTI increased by 270%. The MFR values of PLA/PCL blends decreased with increasing LTI. Similar results were observed for shear viscosity. LSCM measurements showed that the diameters of PCL were dispersed about 0.4 pm in the presence of LTI. VE-AFM showed that spherical particles with diameters of 50 nm were PCL-rich domain. These results indicate that isocyanate groups of LTI react with both terminal hydroxyl or carboxyl groups of polymers, and the compatibility of PLA/PCL blends improves with LTI by reactive processing.