Renewable poly(ether-block-amide) (PEBA) elastomer was grafted with glycidyl methacrylate (GMA) to prepare PEBA-GMA, then it was melting blended with poly (lactic acid) (PLA) in an effort to achieve fully bio-based super-toughened PLA materials. The notched Izod impact strength of PLA/PEBA-GMA blend was significantly enhanced when the content of PEBA-GMA was higher than 20 wt%, and the tensile toughness was also improved. It was found a new copolymer was formed at the interface due to the reaction of the end groups (OH, COOH) of PLA with the epoxide group of PEBA-GMA. This greatly improves the interfacial adhesion between PLA and PEBA-GMA component, leading to finer dispersed particles of PEBA-GMA which were better wetted by the PLA matrix. Therefore, the highly enhanced notched impact strength was ascribed to the effective reactive compatibilization promoted by the interfacial reaction. This provides a new idea for preparing super tough PLA materials with bio-based elastomer, which will widely extend the application of PLA.