Abstract: A thermoplastic composition that contains a rigid renewable polyester and a polymeric toughening additive is provided. The toughening additive can be dispersed as discrete physical domains within a continuous matrix of the renewable polyester. An increase in the deformation force and elongational strain causes debonding to occur in the renewable polyester matrix at those areas located adjacent to the discrete domains. This can result in the formation of a plurality of voids adjacent to the discrete domains that can help to dissipate energy under load and increase impact strength. To even further increase the ability of the composition to dissipate energy in this manner, an interphase modifier may be employed that reduces the degree of friction between the toughening additive and renewable polyester and thus enhances the degree and uniformity of debonding.