The state of compatability of poly(vinyl alcohol)(PVA) and methyl cellulose(MC), prepared by an aqueous solution casting, were investigated over the entire compositions by dynamical mechanical analyzer(DMA) and differential scanning calorimetry(DSC). The glass transition temperatures of the blends, estimated by DMA, indicate that the blends of PVA and MC showed a definite degree of partial miscibility by showing two glass transition temperatures below 80 wt % MC contents in the blends and one glass transition temperature above 80 wt % of MC contents. The DSC results show a depression of melting point and crystallization temperature of PVA in the blends containing more than 80 wt % MC. This indicates that a considerable compatibility in the blend above 80 wt % MC contents may be attribute to the presence of interaction of hydroxyl groups of component polymers through hydrogen bonding. The DMA study of the effect of plasticizer on the polymers showed that water was a good plasticizer for PVA and PEG400 for MC. The addition of water and PEG400 in the blends showed a synergic plasticizing effect on these blends, which resulted in the large extent of the improvement of the compatibility. The elongation of PVA, MC and blonds was found to increase with addition of PEG400 in the blends, but the tensile strength to decrease with addition of plasticizer.