4‐Hydroxy‐5‐nitrophthalimides were produced via nucleophilic aromatic substitution (NAS) of 4,5‐dichloro phthalimide substituents by potassium nitrite. The use of a N‐phenyl‐phthalimide having a protected 4′‐hydroxyl group allows concurrent deprotection and nitro reduction to amine to give the 4‐hydroxy‐5‐amino‐N‐(4′‐hydroxyphenyl) phthalimide. This key intermediate is the precursor to a poly (ether‐imide‐benzoxazole), and is the condensable monomer for a poly (ester‐imide‐benzoxazole). Benzoxazole monomer formation via condensation with p‐fluorobenzoyl chloride afforded 2‐(4′‐fluorophenyl)‐5,6,‐N‐[4′(‐hydroxyphenyl) imide]‐benzoxazole, which was polymerized under NAS conditions to produce a poly(ether‐imide‐benzoxazole) having an endothermic transition at 454°C with weight retention of 90% at 500°C in both air and nitrogen. Solution polycondensation of the 4‐hydroxy‐5‐amino‐N‐(4′‐hydroxyphenyl) phthalimide monomer with isophthaloyl chloride afforded a poly(ester‐amide‐imide) which was isolated and thermally cyclodehydrated in the solid state under vacuum to give a poly(ester‐imide‐benzoxazole) having 95% weight retention at 500°C in both air and nitrogen, with no detectable DSC transitions up to 500°C. © 1994 John Wiley & Sons, Inc.