LDPE has been blended with plasticized Tapioca starch with starch loadings varying from 20% to 50%. As the starch loading increases, the mechanical properties reduce and drop down to nearly 30% of that of neat LDPE. In order to enhance the adhesion between starch and LDPE, itaconic acid (naturally obtained during fermentation of sugars) was grafted onto LDPE to obtain LDPE-g-itaconic acid and used as compatibilizer. Addition of this compatibilizer substantially improved the mechanical properties, especially the tensile strength and tensile modulus. Scanning electron micrographs of the blend specimens also supported the above observations. Thermogravimetric analysis was carried out to assess the degradation of blends. Thermal ageing for a short span was also carried out to probe the trend of degradation and its effect on mechanical properties.