To enhance the thermal and mechanical properties of poly(propylene carbonate) (PPC), the terpolymers were synthesized from carbon dioxide, propylene oxide, and a third monomer, [(2-naphthyloxy)methyl]oxirane (NMO) using supported zinc glutarate as catalyst. The structure of these terpolymers was confirmed by H-1 NMR spectroscopy. The catalytic activity, molecular weight, carbonate unit content, as well as thermal and mechanical properties were investigated extensively. The experimental results showed that the catalytic activity, molecular weight, and carbonate unit content decreased with the incorporation of NMO. DSC measurements indicated that the introduction of NMO increased the glass transition temperature from 38 to 42 degrees C. TGA tests revealed that the thermal decomposition temperature (Tg-5%) of the synthesized terpolymer increased significantly, being 34 degrees C higher than that of pure PPC. Accordingly, the mechanical properties proved also to be enhanced greatly as evidenced by tensile tests. These thermal and mechanical improvements are of importance for the practical process and application of PPC. (c) 2008 Wiley Periodicals, Inc. J Appl Polym Sci 108: 1037-1043, 2008.