Two novel liquid crystalline polymers, poly-diethyleneglycol bis(4-hydroxybenzoate) terephthaloyl and block copolymer (PDBH), were synthesized by condensation reaction. The blends of the two liquid crystalline polymers and o-cresol formaldehyde epoxy resin were prepared by linear phenol-formaldehyde resin as curing reagent. Both mechanical and thermal properties of the blends containing liquid crystalline polymer were improved to a certain extent. By adding 5 wt % PDBH, the impact strength, bending strength, and the glass transition temperature were enhanced by 128%, 23.84%, and 28 degrees C, respectively, compared with the unmodified version. The results of curing kinetics showed that the curing reaction active energy of the modified system by PDBH decreased from 79.70 to 70.26 kJ/mol. (c) 2005 Wiley Periodicals, Inc.