This study reports on using reactive extrusion (REX) modified thermoplastic starch particles as a bio-based and biodegradable nucleating agent to increase the rate of crystallization, percent crystallinity and improve oxygen barrier properties while maintaining the biodegradability of PLA. Reactive blends of maleated thermoplastic starch (MTPS) and PLA were prepared using a ZSK-30 twin-screw extruder; 80% glycerol was grafted on the starch during the preparation of MTPS as determined by soxhlet extraction with acetone. The crystallinity of PLA was found to increase from 7.7% to 28.6% with 5% MTPS. The crystallization temperature of PLA reduced from 113 °C to 103 °C. Avrami analysis of the blends showed that the crystallization rate increased 98-fold and t1/2 was reduced drastically from 20 min to <1 min with the addition of 5% MTPS compared to neat PLA. Observation from POM confirmed that the presence of MTPS in the PLA matrix significantly increased the rate of formation and density of spherulites. Oxygen and water vapor permeabilities of the solvent-casted PLA/MTPS films were reduced by 33 and 19% respectively over neat PLA without causing any detrimental impacts on the mechanical properties (α = 0.05). The addition of MTPS to PLA did not impact the biodegradation of PLA in an aqueous environment.