Children’s toys comprise another product category that needs to be developed from 100% natural materials that are clean, safe, and biodegradable. This work aimed to investigate the effect of polylactic acid (PLA) grades and contents on the properties of polymer blends, with the goal being the development of bio-materials for producing children’s toys. It was found that, at the first peak, the polymer blending with 70 wt% PLA had higher thermal stability than that with 40 wt% PLA. The polymer blending with 70 wt% PLA showed higher modulus of rupture, tensile strength, compressive strength, and hardness between 59–62%, 257–433%, 200–540%, and 373–647%, respectively, compared to 40 wt% PLA. The polymer blends produced from PLA grade 4043D gave superior flexure, tension, compression, and hardness properties than 2003D and 3251D grades. The appropriate formulation of polymer blends for producing children's toys is a combination of natural rubber 30 wt% and PLA 70 wt% with a PLA grade of 4043D. The flexural, tensile, and compressive forces of toy boat samples made from polymer blends were 71.76, 79.72, and 113.6 N, respectively, while the specified standard is 69.0, 69.0, and 113.5 N, respectively, meaning the samples met the requirements of the American Society for Testing and Materials F963.