In the presented paper, diethanol amine is employed to plasticize corn starch, and plasticized starch is incorporated into polypropylene to create semibio-based composites with the aid of compatibilizer, maleic anhydride-grafted PP (PPMA). Compared with PP/starch blend, the presence of diethanol amine changes the morphology and increases the plasticity of starch due to the reduction effect of intermolecular hydrogen bonding interactions. Adding PPMA could reduce the dispersed size of starch granules in the polymer matrix due to in situ reactive compatibilization. Addition of 30 wt% PPMA decreases the starch granules size from ~10 μm to ~5 μm, and increases the tensile strength from 16 MPa for PP/plasticized starch to 30 MPa, increased by 87.5%. Thus, as-created bio-composites with improved mechanical properties will find many potential applications such as packaging.