A breathable film having improved processing properties and reduced cost includes a breathable film-forming layer composition including a matrix polymer, a particulate organic filler, and a compatibilizer. The particulate organic filler is incompatible with the matrix polymer and tends to agglomerate when mixed with the matrix polymer alone. The compatibilizer achieves thermodynamic equilibrium between the matrix polymer and filler within a defined filler particle size range suitable for producing stretched breathable film. The film processes more easily than breathable films containing inorganic fillers, and is less expensive to manufacture.