A knowledge-based potential for the polypeptide backbone as a function of the dihedral angles is developed and tested. The potential includes correlations due to the conformations and compositions of adjacent residues. Its purpose is to serve as a major component of a coarse-grained protein potential by including the most relevant local interactions while averaging out nonbonded ones. A probability density estimation algorithm and a multi-resolution probability combination procedure are developed to produce smooth probability distributions and dihedral angle potentials. The potential is described by a set of two-dimensional dihedral angle surfaces involving the various combinations of amino acid triplets and duplets. Several tests are carried out to evaluate the quality of the potential. Monte Carlo simulations, using only the dihedral angle potential and a coarse-grained excluded volume potential, show that the resulting dihedral angle distributions and correlations are consistent with those extracted from protein structures. Additional simulations of unfolded proteins are carried out to measure the NMR residual dipolar coupling (RDC). Significant correlations are obtained between the simulations and the corresponding experiments consistent with other simulations in the literature. Finally, the dihedral angle entropies are calculated for the 20 amino acids. In particular, the entropy difference between alanine and glycine agrees with the ones computed from molecular dynamics simulations (approximate to 0.4 kcal/mol).