A new amine terminated amide-imide (ATAI) was synthesized by the polycondensation reaction of tetrimide dicarboxylic acid containing bulky m-chloro phenyl pendant with p-phenylene diamine. The structure of all the prepared compounds were confirmed by FTIR,H-1-NMR and C-13-NMR techniques. This new diamine was then used to cure epoxy resin namely diglycidyl ester of bisphenol-A and the cure reaction was studied by Differential scanning calorimetry. The cured blends show better thermal properties. The T-g of the epoxy resin was increased from 134 degrees C to 156 degrees C on addition of 6% of ATAI. The DMA results indicate that the polymer blend with 8% ATAI composition has higher storage modulus compared to 3% and 6% ATAI composition. The polymer blends with 3% and 6% ATAI composition have higher crosslinking density and lower intersegmental and intrasegmental friction coefficients than 8% ATAI composition. In the DMA curves an increase in the peak half-width was observed with increasing ATAI composition, indicating the possibility of the existence of more than one phase with increasing ATAI concentration. (C) 2008 Wiley Periodicals, Inc.