Two novel liquid crystalline polymers, polydiethyleneglycol bis(4-hydroxybenzoate) terephthaloyl and block copolymer (PDBH), were synthesized by condensation reaction. The blends of the two liquid crystalline polymers and o-cresol formaldehyde epoxy resin were prepared by linear phenol-formaldehyde resin as curing reagent. Both mechanical and thermal properties of the blends containing liquid crystalline polymer were improved to a certain extent. By adding 5 wt % PDBH, the impact strength, bending strength, and the glass transition temperature were enhanced by 128%, 23.84%, and 28°C, respectively, compared with the unmodified version. The results of curing kinetics showed that the curing reaction active energy of the modified system by PDBH decreased from 79.70 to 70.26 kJ/mol.