<p>The sustainable development principle demands the continuous expansion of bio-based and bio-degradable materials in the fields of producing and living. Poly(vinyl alcohol) (PVA)/polylactide (PLA) eco-blends were manufactured using xylitol (X) and lactic acid (L) as the bio-plasticizer and bio-compatibilizer. FTIR results indicated the hydrogen bonding interactions among PVA, xylitol, lactic acid and PLA. The excellent plasticizing effect of xylitol for PVA was proved by DSC and XRD tests; the glass transition temperature, melting temperature and crystallinity of PVA were obviously decreased in the eco-blends. TGA results found that the addition of additives damaged the thermal stability of PVA. The melt flow rates of PVA/X/PLA blends were better than those of PVA/X/L/PLA blends. The water absorption and contact angle tests showed that PLA improved the water resistance but lactic acid had an opposite effect. The mechanical tests demonstrated that the tensile and tear strengths and elongation at break were increased by appropriate content of PLA. The lactic acid improved the elongation but showed a negative effect on the strengths. The results of essential work of fracture approach showed that PLA and lactic acid increased the fracture toughness of the eco-blends. These novel bio-blends presented promising prospects in the applications of degradable packages and eco-materials.</p>