Strength and toughness are both of great importance for the application of polylactic acid (PLA). Unfortunately, these two properties are often contradictory. In this work, an effective and practical strategy is proposed by using carboxylated graphene oxide (GC) grafted with polyethylene glycol (PEG), i.e. GC-g-PEG. The synthesis procedure of GC-g-PEG is firstly optimized. Then, a series of PLA nanocomposites were prepared by the melt blending method via masterbatch. In comparison to that achieved over pure PLA, these nanocomposites are of higher crystallinity, thermal stability and mechanical strength. This is mainly attributed to well-tailored interface and good dispersion. Especially, while retaining the tensile strength of the original PLA, the elongation at break increases by seven times by adding 0.3 wt% GC-g-PEG.