Four series of liquid‐crystalline copolyesters were prepared by the transesterification of poly(ethylene terephthalate) (PET) with 4‐acetoxybenzoic acid (4‐ABA) or mixtures of 4‐ABA and acetylsalicylic acid (ASA). Two series consisted of 30 mol % PET, and the other two series consisted of 40 mol % PET. The molar ratio of 4‐HBA and ASA was varied in all four series from 0 to 25 mol %. One 30% PET series and one 40% PET series were prepared with the addition of acetic acid, which caused a more perfect randomization of the sequence but yielded slightly lower molecular weights. The incorporation of ASA reduced the crystallinity, which vanished completely at a salicylic acid (SA) content greater than 10 mol %. SA also reduced the stability of the nematic phase, but all the copolyesters were thermotropic up to a 20 mol % SA content. Furthermore, the molecular weights decreased with the increasing incorporation of ASA. Despite this negative trend, the melt viscosity and the storage and loss moduli passed a maximum between 5 and 10% SA. Obviously, the incorporation of SA favored the formation of entanglements. © 2000 John Wiley & Sons, Inc. J Polym Sci A: Polym Chem 38: 2013–2022, 2000