The propanoate of (2-hydroxypropyl)cellulose was prepared by esterification of (hydroxypropyl) cellulose. Thin layers of the bulk polymer between glass surfaces were colored at room temperature, due to cholesteric reflection from a liquid crystalline structure. On heating, the color moved to longer wavelengths and disappeared; the liquid crystalline-isotropic transition was complete at 167 °C. The polymer also forms a lyotropic mesophase in acetone at concentrations above ~30 wt % polymer.