Polylactide (PLA) is inherently brittle and lacks ductility, which greatly restricts its range of applications. In order to address these issues, we blended PLA with biodegradable poly(3-hydroxybutyrate-co-4-hydroxybutyrate) (P(3HB-co-4HB)), and introduced epoxidized soybean oil (ESBO) as a reactive modifier to enhance the properties of the PLA/P(3HB-co-4HB) blends. Furthermore, we used theoretical calculations, Fourier transform infrared spectroscopy (FT-IR), X-ray diffraction (XRD), Soxhlet extraction, differential scanning calorimetry (DSC), polarising optical microscopy (POM), thermogravimetric analysis (TGA), scanning electron microscopy (SEM), and mechanical testing to investigate the compatibility, crystallization behavior, microstructure, thermal and mechanical properties of the PLA/P(3HB-co-4HB)/ESBO blends. The mechanisms underlying these properties were analyzed in detail. ESBO was found to form cross-linking grafts between PLA and P(3HB-co-4HB), strengthening interfacial bonding and thereby enhancing compatibility. The in situ formation of graft copolymers resulted in finer, more uniform dispersion of P(3HB-co-4HB) and ESBO droplets within the PLA matrix, further improving interfacial adhesion and overall material compatibility. With the addition of 5 wt% ESBO, the tensile strain at break of PLA/P(3HB-co-4HB)/ESBO films increased from 114.6 % to 453.3 %, while the notched impact strength improved from 3.75 kJ∙m