AbstractLDPE and chitosan blends were prepared using an epoxy‐functionalized polyethylene as compatibilizing agent for improving interfacial adhesion. Compatibilization improved both tensile and flexural properties (with values approaching close to that of neat LDPE) when compared with that of uncompatibilized blends. However, the elongation at break reduced due to the addition of rigid chitosan. Thermogravimetric analysis showed a two‐stage degradation, while differential scanning calorimetry exhibited reduced crystallinity for compatibilized blends. Biodegradation studies revealed increased biodegradability with increase in chitosan loading. © 2011 Wiley Periodicals, Inc. J Appl Polym Sci, 2012