A biodegradable, polyolefin-based material composition having incorporated therein thermoplastic starch particles is described. The material includes from about 5% to about 45% of a thermoplastic starch (TPS), from about 55% to about 95% of a polyolefin or mixtures of polyolefins, and from about 0.5% to about 8% of a compatibilizer, which has a non-polar backbone and a polar functional monomer or a block copolymer of both the non-polar block and a polar block. A method of forming a film and packaging assemblies made with the polymeric material are also described.