A novel liquid crystalline epoxy monomer, 1,1'-bis [4-(2,3-epoxypropoxyphenyleneininomethyl)1-2,2'dimethylbiphenylene (BMPE) was synthesized and characterized by infrared (IR) and Nuclear magnetic resonance (NMR) spectroscopy. The effect of BMPE content on mechanical and thermal properties of its blends with Diglycidyl Ether of Biphenol A (DGEBA) was investigated. BMPE presented a Schlieren texture in the range of 150 to 215 degrees C as observed by differential scanning calorimeter (DSC) and polarizing optical microscope (POM). The improvement of mechanical properties of DGEBA modified with BMPE was achieved without sacrificing thermal resistance. Scanning electronic microscopy (SEM) graphs of fracture surfaces of the cured blends showed that microfiber-like structure formed in the cured blends, which would be a result of self-oriented alignment of azomethine mesogen component. (c) 2007 Wiley Periodicals, Inc.