By means of initiation of the high temperature and shearing stress of an extruder,we synthesized the graft copolymer of starch with acrylate monomers based on the simple dry method.The effects of reaction conditions on graft copolymerization were discussed. Grafted starch used as a compatibilizer for the blend system of starch and polyethylene was further investigated. The results indicate that grafted starch as a compatibilizer can improve the mechanical properties and rheologic properties of the blend of starch and polyethylene.