Blends of poly(butylene adipate-co-terephthalate)/polyglycolic acid (PBAT/PGA) were prepared by melt blending, in which PGA was used as reinforcing component. Impacts of PGA content on tensile property, microstructure, crystallization property, melt viscosity, barrier performance of the blends were researched. Compared with very soft behavior of PBAT, the tensile yield strength and modulus of PBAT/PGA (65/35) sample increased from 7.67, 62.6 MPa of neat PBAT to 12.05, 158.9 MPa, respectively. However, owing to poor PBAT/PGA interface compatibility, its elongation at break decreased significantly from 1082.1% to 88.7%. An epoxy chain extender (ADR) was used as reactive modifier to improve its interface compatibility and rheological property. The related physical properties of PBAT/PGA/ADR (65/35/x) samples with various ADR contents were evaluated in detail. It was found that ADR exerted relatively complex influences on the properties. Overall, compared with neat PBAT and PBAT/PGA (65/35) sample, the PBAT/PGA/ADR (65/35/x) samples exhibited better stiffness-ductility balance and higher processing stability.