As a renewable resource, starch is considered to be fully biodegradable and nonpolluting to the environment but the hygroscopicity of starch is the main disadvantage for wider applicability in the production of a polymer-based material. Hydrophobically modified starch prepared using natural-based plasticizers/modifiers in a first step ([−]-diisopropyl D-tartrate [DiPT], ricinoleic acid [RA] and epoxidized soybean oil [ESO]), and maleated polypropylene (MAPP) in a second step contributed to better compatibility, and thus reinforcing of composites. Tailored processing conditions, structural/morphological properties, hydrophobicity, and water-resistance of the modified starch were established. In addition, the Charpy impact and tensile strength of composites, based on poly(ethylene-co-acrylic acid) (EAA) and modified starches, were determined. Increased tensile strength and Young modulus of the composite using starch-modified with DiPT-MAPP, that is, 3 and 83%, respectively, indicated the possible applicability of obtained materials.