In this paper, the performance of Luby Transform (LT) codes with modified degree distribution (MDD) is investigated for packet erasure channels (PEC). In LT codes, the number of degree-1 encoded symbols at the receiver plays a vital role in the successful recovery of all information symbols. Hence, this work aims to determine the optimal number of received encoded symbols needed to be degree-1 at the decoder for maximizing the decoding performance of LT codes. Simulation results demonstrate that significant improvements in successful decoding probability could be achieved by varying the proportion of degree-1 encoded symbols using MDD.