A series of hydroxy-containing polyimides, containing pendent hydroxyl groups ortho to the heterocyclic imide nitrogen, were prepared via the solution condensation of aromatic dianhydrides with bisaminophenols. The polyimides were found to undergo thermal conversion to polybenzoxazoles upon heating between 350 and 500 degrees C under nitrogen or vacuum. The thermal conversion was accompanied by loss of carbon dioxide. No other volatile byproducts were detected by IR or NMR. Structures were confirmed by IR, solid-state NMR, and elemental analysis. Polybenzoxazole films, obtained by the thermolysis of solvent-cast poly(amic acid) or polyimide solutions, displayed excellent solvent resistance and good thermal stability. Insolubility of the polybenzoxazoles in all solvents tested indicates possible cross-linking. No crystallinity was observed by X-ray diffraction. Due to the insolubility of the resulting polybenzoxazoles, model compound reactions were also investigated. In the vapor phase at 400 degrees C, N-(2-hydroxyphenyl)phthalimide underwent intramolecular thermal conversion to 2-phenylbenzoxazole in 83% yield, emulating the polyimide reactions. Thermal conversion of N-(2-hydroxyphenyl)phthalimide in the melt at 400 degrees C resulted in the formation of intermolecular reaction products. The intermolecular reactions may be a source of possible cross-links, which would explain the insolubility of the polybenzoxazoles.