Starch and poly(vinyl alcohol) based barrier coatings for flexible packaging papers were studied. Both octenyl succinate modified and hydroxypropylated corn and potato starches were blended with regular and ethylene modified poly(vinyl alcohol) to increase the water vapor barrier properties and enhance the flexibility of the starch coatings, in order to accomplish superior barrier performance. Phase separation between starch and poly (vinyl alcohol) was studied in detail, both in the solution and in dry draw-down coatings on paper. The barrier performance of the coated paper was evaluated with respect to water vapor transmission rate. Conditions for the creation of a thin surface layer consisting of only one of the pure polymers were identified and discussed in terms of phase separation in solution migration of poly(vinyl alcohol) to the uppermost surface layer. The phase separation promoted low water vapor transmission rates also with a rather high fraction of starch in the coatings