A facile and efficient strategy for preparing well dispersed graphene oxide (GO)-co-Poly(phenylene benzobisoxazole) (PBO) copolymer fibers was carried out by direct in situ polycondensation of composite inner salts. The composite inner salts were achieved to improve the dispersivity, solubility, reactivity, and interfacial adhesion of GO in PBO polymer matrix. The structure and morphology of GO-co-PBO copolymer fibers have been characterized. It was demonstrated that GO were covalently incorporated with PBO molecular chains and dispersed considerably well in PBO fiber even the GO reach to 3 wt %. Meanwhile, the tensile modulus, tensile strength and thermal stability of GO-co-PBO copolymer fibers increased considerably with GO. The mechanism and theoretical calculation of GO enhanced PBO fiber were also discussed. The main reasons for the improvement on performance of PBO fiber should be attributed to good dispersion GO in PBO matrix and covalent bonding networks at the interface between GO and PBO molecular chains. (c) 2013 Wiley Periodicals, Inc. J Polym Sci Part A: Polym Chem, 2013, 51, 1831-1842