This study showed the effect of different compounding methods on the impact resistance and tensile properties of poly(lactic acid) blended with cassava starch and natural rubber latex. Poly(ethylene glycol) was used as a plasticizer. It was found that the compounding method was important for the derived mechanical properties of the blend. Furthermore, cooling method of the extrudate also affected the mechanical properties of the blends. The air cooling in the extrusion process provided higher mechanical properties than the water cooling. This work also showed the effect of the natural rubber in the PLA/starch blend.