Poly(lactic acid) (PLA)/poly(butylene adipate-co-terephthalate) (PBAT) blends were compatibilized using epoxidized polyhedral oligomeric silsesquioxanes (Epoxy-POSS). Three different Epoxy-POSS types were utilized having mono-, tri-, and multi-epoxides per POSS cage. In order to understand the localization of Epoxy-POSS types, wetting coefficients were calculated from surface energy measurements. According to scanning electron microscopy (SEM) and transmission electron microscopy (TEM), it was observed that Epoxy-POSS types mostly located at the interface of PLA/PBAT phases. The compatibilization of PLA and PBAT was shown through the decrease in dispersed particles size and the shifts in glass transition temperatures of phases. Mechanical properties of PLA/PBAT improved in the presence of Epoxy-POSS types. The Izod impact strength and elongation in tensile test values were maximized when 0.5% monoepoxy-POSS was used as compatibilizer. The reactions between Epoxy-POSS and polymers were monitored by Fourier transform infrared (FTIR) analysis and rheology. (c) 2018 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2019, 136, 47217.