The objective of the present work was to improve blown film extrusion processability and properties of thermoplastic starch (TPS) film by incorporating plasticized chitosan, with a content of 0.37-1.45%. The effects of chitosan on extrusion processability and melt flow ability of TPS, as well as that on appearance, optical properties, thermal properties, viscoelastic properties and tensile properties of the films were investigated. The possible interactions between chitosan and starch molecules were evaluated by FTIR and XRD techniques. Chitosan and starch molecules could interact via hydrogen bonds, as confirmed from the blue shift of OH bands and the reduction of V-type crystal formation. Although the incorporation of chitosan caused decreased extensibility and melt flow ability, as well as increased yellowness and opacity, the films possessed better extrusion processability, increased tensile strength, rigidity, thermal stability and UV absorption, as well as reduced water absorption and surface stickiness. The obtained TPS/chitosan-based films offer real potential application in the food industry, e.g. as edible films.