The present invention discloses water-soluble compositions comprising a blend of poly(ethylene oxide) and poly(vinyl alcohol) that have improved ductility over water-soluble compositions comprising poly(vinyl alcohol) alone. In one desirable embodiment of the present invention, the poly(ethylene oxide) component of the blend is grafted. Grafted poly(ethylene oxide) resins have improved processability and improved blend compatibility with poly(vinyl alcohol). Films comprising a melt blend of poly(vinyl alcohol) and grafted poly(ethylene oxide) have improved melt processability as well as other improved properties. Films comprising compositions of the present invention have improved ductility over films comprising poly(vinyl alcohol) alone while retaining much of the high strength and water solubility exhibited by such poly(vinyl alcohol) films.