Low temperature cure cyanate ester resin systems were developed and modified with epoxy-terminated butadiene acrylonitrile rubber (ETBN) and impregnated into woven glass fabric. Mode I and mode II interlaminar fracture toughness values of the cured laminates were evaluated as a function of rubber concentration. Mode I fracture toughness increased to almost twice that of the unmodified system, while mode II fracture toughness remained essentially unchanged. Composite samples were subjected to aging experiments in water and the absorption/desorption behavior was investigated as was the effect on thermal performance. The presence of rubber was found to reduce the rate of matrix deterioration but also caused a substantial increase in water uptake. It was found that although the addition of rubber to the matrices decreased the unconditioned (dry) T-g, all specimens showed the same reduction in T-g after equilibrium water absorption.