Novel blends were prepared from biobased poly(trimethylene terephthalate) (PTT) and poly(butylene adipate-coterephthalate) (PBAT) using a twin screw extrusion process as a function of different weight ratios. Thermal stability, mechanical, and interfacial properties of PTT/PBAT blends were investigated using a thermogravimetric analyzer and mechanical analyzer. Phase behavior and surface morphology of the blends were characterized using scanning electron microscopy. Interfacial bonding value of the PTT/PBAT blend was evaluated from the Pukanszky empirical relationship. Viscoelastic properties of PTT/PBAT blends were investigated using the dynamic mechanical analyzer. PTT/PBAT blend exhibited higher thermal stability than the neat PTT matrix. The entire blend showed better interfacial adhesion between the matrixes. Storage and loss modulus of the PTT/PBAT blend reduces with increasing PBAT content. PTT/PBAT blend exhibited higher impact energy than the neat PTT matrix, because of its flexible and amorphous nature of PBAT polymer and increasing toughness.