PLA/PBAT (Poly (lactic acid)/Poly (butylene adipate-co-terephthalate)) blend is a biodegradable material commonly considered a potential alternative to polymeric products from petroleum sources. PLA is intrinsically brittle, endowed with a low elongation at break and poor impact strength that restricts its use for some applications while PBAT has high ductility, heat resistance, and impact resistance. However, PLA associated with PBAT results in an incompatible blend, due to poor interfacial adhesion. The compatibilization of PLA/PBAT can be improved through physical and chemical interaction between the components, and with exposure to ionizing radiation. Cellulose is the most abundant biodegradable polymer available and is considered the potential material to be used as reinforcement in sustainable composite materials, as well as nanocellulose while an alternative to synthetic nanoparticles. This review describes the state of the art of polymer blends of PBAT and PLA, in terms of manufacturability, compatibilization, biodegradation, radiation processing, and cellulose nanocrystal reinforcement.