The growing global population is generating ever increasing amounts of waste and it brings an important environmental issue. Therefore there has been an increased interest in the production and use of biodegradable polymers. Starch and starch based polymers are inexpensive, naturally occurring renewable materials and they have the potential to be used in the manufacture of biodegradable plastics. In this study, starch/polycaprolactone (NS/PCL) blends were prepared by reactive extrusion known as a fast and efficient method of polymerization. PCL was modified with maleic anhydride to improve the compatibility between the two polymers. The polymer nanocomposites were obtained by adding titanium dioxide (TiO2) fillers to the resulting polymer blend in micro compounder. The composites were shaped by injection molding method. Properties of polymer nanocomposites were investigated by XRD, SEM, DMA, DSC and TGA analysis. SEM analysis showed that there was a good interfacial adhesion between NS/PCL blends. However TiO2 nanoparticles tend to agglomerate in the composite. It was found that addition of nanoparticles increases rigidity, while it decreases elasticity of polymer matrix. TGA analysis revealed that the addition of TiO2 reduced thermal stability of PCL component in the composite significantly.