Blends of petroleum-based polymers with bio-sourced polymers are an alternative to polymers derived from non-renewable resources. However, polymer blends are usually immiscible, and a compatibilizer, often a block copolymer, is required to improve mixing. In this work, we synthesized a block copolymer of ethyl cellulose (ECel) and poly(benzyl glutamate), termed ECel-block-poly(BG), and we applied it as a compatibilizer for ECel/poly(ethylene terephthalate) (ECel/PET) blends. To synthesize this block copolymer, two ECel-NH₂ macroinitiators were evaluated for ring-opening polymerization of benzyl glutamate-N-thiocarboxyanhydride (BG-NTA), one with the amine directly attached to the ECel reducing chain end, and the other with a short PEG linker between ECel and the amine initiator. The PEG-containing macroinitiator led to the synthesis of a block copolymer that was unimodal by size-exclusion chromatography (SEC) while the other initiator led to uncontrolled homopolymerization of BG-NTA, presumably due to steric hindrance near the primary amine. A series of solvent studies revealed that polymerization of BG-NTA in CH₂Cl₂ was the best system for obtaining the ECel-block-poly(BG) block copolymer, achieving 95% conversion based on ¹H NMR spectroscopy. The success of chain extension and molecular weight analysis were evaluated using SEC with multi-angle light scattering (SEC-MALS). Blends composed of 70% ECel and 30% PET with different weight percentages (wt%) of block copolymer compatibilizer were made via solvent casting from hexafluoroisopropanol. Phase contrast optical microscopy and small-angle laser light scattering were used to probe the effectiveness of the ECel-block-poly(BG) block copolymer as a compatibilizer (5–30 wt%) for the 70/30 ECel/PET blends. A decrease in average domain size from 15 ± 4 μm in the base blend (without compatibilizer) to 2 ± 1 μm in the blend containing 30 wt% ECel-block-poly(BG) indicated successful compatibilization of the blend.