Blending two biodegradable aliphatic polyesters with complementary bulk properties is an easy way of tuning their final properties. In this work, the ductile poly(butylene succinate) was mixed with polylactide, and as expectable, the blends show improved toughness with sharply reduced strengths. The pristine cellulose nanofibers were then used as the reinforcement for the blends. It is found that most nanofibers are dispersed in the polylactide phase because polylactide has better affinity to nanofibers, and the lower viscosity level of polylactide also favors driving nanofibers into the continuous polylactide phase during melting mixing. In this case, the strength and rigidity losses resulted from the presence of soft poly(butylene succinate) phase are compensated to some extent. To further improve mechanical properties, a two-step approach (reactive processing of blends, followed by the incorporation with nanofibers) was developed. This work provides an interesting way of fabricating fully biodegradable composites with well-balanced mechanical performance.