A hot melt adhesive comprises a polylactide homopolymer or copolymer, such as polylactic acid; sulfonated copolyester; and at least one plasticizer, and is compostable. The plasticizer may be a solid plasticizer, such as a benzoate, and a second plasticizer may also be used. The adhesive is suitable for use in a variety of applications, such as case and carton applications, use with burlap or other compostable substrates for tree bulbs or plant seeds, and use with other compostable films, and is especially appropriate for dual-walled paperboard beverage cups. The adhesive demonstrates good bond performance comparable to non-compostable adhesives over a range of temperatures, reflective of the temperatures of hot and cold beverages.