The effect of screw speed on the flow behavior, mechanical, thermal and morphological properties of the melt compounded plasticized poly(lactic acid) (PLA)/polyhedral oligomeric silsesquioxanes (POSS) composites were investigated. Two types of POSS-aminopropylisobutyl-POSS (A-POSS) as the reactive one and the octaisobutyl-POSS (O-POSS) as the non-reactive one, were used at 1-10 wt% filler loadings. Poly(ethylene glycol) (PEG-8000 g/moles) was utilized as a plasticizer. PEG amount was kept constant at 10 wt% with respect to PLA. To investigate the compounding conditions on the properties of the composites, two different screw speeds (100 and 200 rpm) were used. It was found that incorporation of POSS particles to the PLA decreased the melt viscosity of the composites due to the slip-agent behavior of POSS molecules. The mechanical test results showed that composites compounded at 100 rpm have higher yield strength and modulus values. Moreover, a significant improvement in Izod impact strength of plasticized PLA composites compounded at 100 rpm was obtained (regardless of POSS type). SEM analysis showed that POSS particles dispersed homogeneously in polymer matrix at all loadings regardless of screw speed. It was revealed from DSC that POSS particles acted as a nucleating agent for PLA/PEG independently from mixing conditions. Moreover, the percent crystallinity was found to be higher in the presence of POSS.