An epoxy resin based upon the diglycidyl ether of bisphenol-A was modified with poly(bisphenol A carbonate) (PC). Prior to aromatic amine cure, the possible reactions in the epoxy resin/PC blend were investigated using GPC and FTIR techniques. It was shown that at 150 degrees C, the epoxy resin acted as a plasticizer and promoted the crystallization of PC. In addition, a transesterification between the secondary hydroxyl groups in the epoxy resin with the carbonate groups in PC occurred. This reaction resulted in degraded PC chains with phenolic hydroxyl end groups. There was no evidence of reaction of epoxide groups at 150 degrees C in this blend. At 200 degrees C, the secondary hydroxyl groups acted as a catalyst converting most of the aromatic-aromatic carbonates to the aromatic-aliphatic and aliphatic-aliphatic carbonates through transesterification. At this elevated temperature, the secondary hydroxyl groups were regenerated by the addition reaction between the epoxide groups and the phenolic hydroxyl end groups, either from the transesterification or the hydrolysis of PC. This addition reaction combining the PC chains and epoxy chains eventually resulted in a crosslinked polymer if the extent of reaction was high. Thus, by using a melt blending process at high temperature, e.g., 200 degrees C, a copolymer network structure of PC-modified epoxy could be formed. The fracture toughness should be increased by increasing the capability for plastic deformation due to the incorporation of PC chains into the network; results will be reported in a future study.